Q4 2023 TELUS Corp Earnings Call

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The conference is now being recorded.

Operator: The conference is now being recorded. Good day, and welcome to the Telus 2023 Q4 earnings conference call. I would like to introduce your speaker, Robert Mitchell. Please go ahead.

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Good day and welcome to the tell US 2023, Q4 earnings conference call.

Like to introduce your Speaker Robert Mitchell. Please go ahead.

Robert Mitchell: Hello, everyone. Thank you for joining us today. Our fourth quarter of 2023 results, news release, MD&A financial statements, and supplemental investor information were posted on our website this morning. On our call today, we'll begin with remarks from Darren and Doug. For the Q&A portion, we will be joined by other members of the executive leadership team. In brief, prepared remarks, slides, and answers to questions contain forward-looking statements. Actual results could vary materially from these statements; the assumptions on which they are based, and the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada and the U.S., including in our fourth quarter annual 2023 MD&A. With that, over to you, Darren. Thanks, Randy. And hello, everyone.

Hello, everyone and thank you for joining us today, our fourth quarter 2023 results news release, MD&A financial statements and supplemental Investor information were posted on our website. This morning.

On our call today will begin with remarks by Darren and Doug.

For the Q&A portion will be joined by other members of our executive leadership team briefly from head remarks slides and answers to questions contain forward looking statements actual results could vary materially from these statements.

<unk> on which they are based in the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada, and the U S, including in our fourth quarter and annual 2023, MD&A with that over to you Darren Thanks.

Thanks, Randy and Hello, everyone.

Darren: Throughout 2023, our team successfully navigated a highly competitive industry and overcame a challenging macroeconomic landscape and dynamic regulatory environment to achieve strong operational and financial results across our business. Indeed, our results for the year demonstrate execution strength in our T-Tech business segment, characterized by the potent combination of leading customer growth and strong operational and financial results, enhanced by our significant and ongoing focus on cost efficiency. These results were buttressed by improving resilient fourth-quarter profitability from our DLTX segment despite the continued challenging macroeconomic operating environment faced by Telus International.

2023, our team successfully navigated a highly competitive industry and overcame a challenging macroeconomic landscape and dynamic regulatory environment to achieve strong operational and financial results across our business.

Indeed, our results for the year demonstrate execution strength and our T. Chek business segment characterized by the potent combination of leading customer growth and strong operational and financial results enhanced by our significant and ongoing focus on cost efficiency. These.

These results were buttressed by improving our resilient fourth quarter profitability from our <unk> segment.

The continued challenging macro economic operating environment faced by Telus International.

Darren: Robust performance in our core telecom business is underpinned by our globally leading broadband networks and superior customer-first culture. This enabled our strongest fourth quarter customer growth on record with industry-leading total net additions of $404,000. This represented an increase of 34% year over year, driven by strong demand for our leading portfolio of bundled services across mobility and VIX. The fourth quarter capped off a record-setting year for industry-best customer net additions of close to $1.3 million, surpassing our previous record high achieved in 2022 by more than 21%. Notably, 2023 marked the second consecutive year our team delivered more than one million new customer additions.

Robust performance in our core telecom business is underpinned by our globally, leading broadband networks and superior customer first culture.

This enabled our strongest fourth quarter customer growth on record with industry, leading total net additions of 404000.

This represented an increase of 34% year over year, driven by strong demand for our leading portfolio of bundled services across mobility and fixed.

The fourth quarter capped off a record setting year for industry best customer net additions of close to $1 3 million, surpassing our previous record high achieved in 2022 by more than 21%.

Notably 2023, Mark the second consecutive year, our team delivered more than 1 million new customer additions.

Darren: This robot's performance included strong fixed subscriber growth of 259,000, our highest mobile phone net additions since 2010 with 443,000 net new customers, and all-time record connected device net additions of 564,000. Telus' industry-leading growth reflects the consistent potency of our operational execution and our unmatched bundled product offerings across mobile and home. Our team's passion for delivering customer service excellence contributed to strong loyalty across our key product lines, and we, of course, have continued to do this on a continued basis. Looking at our consolidated performance for the full year, operating revenue growth of 9.4% essentially met the lower end of our updated guidance range, reflecting the exogenous challenges we encountered, which we will discuss further on our call today. Despite these challenges, we drove EBITDA growth of 7.6% for the year, just above the midpoint of our public guidance expectations. Moreover, we achieved strong free cash flow of approximately $1.8 billion, representing industry-leading growth of 38% for the year. Let's now turn to take a look at the fourth quarter.

This robust performance included strong fixed subscriber growth of 259000, our highest mobile phone net additions since 2010 with 443000 net new customers and all time record connected device net additions of 500.

64000.

<unk> industry, leading growth reflect the consistent potency of our operational execution, and our unmatched bundled product offerings across mobile and home.

Our team's passion for delivering customer service excellence contributed to strong loyalty across our key product lines and we of course have done this on a continued basis.

Looking at our consolidated performance for the full year operating revenue growth of nine 4% essentially met the lower end of our updated guidance range, reflecting the exogenous challenges, we encountered which we will discuss further on our call today.

Despite these challenges we drove EBITDA growth of seven 6% for the year just above the midpoint of our public guidance expectation.

Moreover, we achieved strong free cash flow of approximately $1 $8 billion, representing industry, leading growth of 38% for the year.

Let's now turn to take a look at the fourth quarter.

Darren: Telus once again achieved resilient operating revenues and strong EBITDA growth of 2.6% and 9.4%, respectively. Looking at our T-TECH mobile results, Telus realized robust customer growth of 329,000 net additions in the fourth quarter. This included healthy mobile phone net additions of 126,000, representing a year-over-year increase of 13%, and notably, surpassing the 10 million mobile phone customer milestone.

Telus once again achieved resilient operating revenues and strong EBITDA growth of two 6% and nine 4% respectively.

Looking at our <unk> mobile results Telus realized robust customer growth of 329000 net additions in the fourth quarter.

This included healthy mobile phone net additions of 126000, representing a year over year increase of 13% and notably surpassing the 10 million mobile phone customer milestone.

Darren: This strength was driven alongside our continued focus on profitable and margin-accretive customer growth. Indeed, this consistent and disciplined approach will continue throughout 2024 and beyond to ensure our mobile customer growth drives EBITDA and cash flow accretion. It also included an all-time quarterly record for connected device net additions of 203,000, close to double compared to the prior year.

This strength was driven alongside our continued focus on profitable and margin accretive customer growth.

Indeed this consistent.

Disciplined approach will continue throughout 2024 and beyond to ensure our mobile customer growth drive EBITDA and cash flow accretion.

It also included an all time quarterly record for connected device net additions of 203000 close to double compared to the prior year.

Darren: This reflects continued strong momentum with respect to our 5G and IoT B2B solutions that are so essential for our successful future. Importantly, our team delivered another quarter of industry-best loyalty results, which continues to be the hallmark of the Telus organization and is emblematic of our customers-first culture in action by our team. While Splendid Mobile Phone's churn of 1.4% was up against the backdrop of heightened competitive activity and not at a level where we are content, it represented an industry-best result by a rather substantial margin. Notably, post-pay mobile phone churn of 0.87% for the full year marks our 10th consecutive year at less than 1%.

This reflects continued strong momentum with respect to our <unk> and Iot <unk> solutions that are so essential for our successful future.

Importantly, our team delivered another quarter of industry that loyalty results, which continues to be the hallmark of the Telus organization and is emblematic of our customers first culture inaction by our team.

While its blended mobile phone churn of one 4% was up against the backdrop of heightened competitive activity and not at a level, where we are content. It represented an industry best result by a rather substantial margin.

Notably postpaid mobile phone churn of zero dot, 87% for the full year marks our 10th consecutive year at less than 1% not many companies can make that claim on a global basis.

Darren: Not many companies can make that claim on a global basis. One key factor behind this consistent industry-best performance is the superiority of our world-leading network. In this regard, in 2023, Telus once again earned numerous accolades for network reliability, network expansiveness, speed, and superiority.

One key factor behind this consistent industry best performance is the superiority of our world leading networks.

In this regard in 2023 Telus once again earned numerous accolades for network reliability network Expansiveness speed and superiority.

Darren: This included multi-year recognition from independent third-party organizations such as OpenSignal and PCMag. Telus has been recognized as Canada's most awarded network by OpenSignal for six consecutive years now. Moreover, PCMag named Telus Canada's Best Mobile Carrier and Best Mobile Carrier for Business in their annual Reader's Choice Awards. The close on mobile, fourth quarter ARPU of $58.50 was down slightly year over year as a result of intense promotional market activity and heightened activity, in particular, in the flanker space.

This included multi year recognition from independent third party organizations, such as open signal and PC Mag.

Telus has been recognized as Canada's most awarded network by open signal over six consecutive years now. Moreover.

Moreover, PC Mag named Telus, Canada's best mobile carrier and basketball carrier for business in their annual Readers' Choice Awards.

The closeout mobile fourth quarter, our pool of $58 50 with.

It was down slightly year over year as a result of intense promotional market activity and heightened activity in particular in the flanker space.

Darren: This was mitigated, however, by our long-standing focus on AMPU accretive loading, driven by our team's passion for winning and retaining profitable customers, whilst remaining highly disciplined in respect of device subsidies. Furthermore, connected devices and IoT will increasingly be an important contributor to network revenue, ARPU, and AMPU growth in the quarters ahead. Indeed, our solid and resilient ARPU, which was up 1.2% in 2023, alongside our leading churn, continued to drive our industry-best mobile phone lifetime revenue. We consistently exceed our national peers in this regard by a considerable margin of up to more than 60% in 2023.

This was mitigated however by our long standing focus on Abu accretive loading driven by our team's passion for winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies.

Furthermore, connected devices and Iot will increasingly be an important contributor to network revenue ARPA and <unk> growth in the quarters ahead.

Indeed, our solid and resilient <unk>, which was up one 2% in 2023.

Alongside our leading churn continued to drive our industry best mobile phone lifetime revenue.

We consistently exceed our national peers in this regard by a considerable margin of up to more than 60% in 2023.

Darren: This leadership is reflective of the combination of our continued focus on high-quality customer growth and leading client loyalty. Now, let's take a look at our T-TECH fixed operating results, where Telus delivered another quarter of industry-fast wireline customer growth. Indeed, our team achieved strong fourth-quarter internet net additions of 36,000. We also continue to drive healthy growth in our TV product line with industry-leading net additions of 23,000, up 35% over the prior year, despite modestly higher churn. Modest residential voice losses of 7,000 again represented an industry-best result.

This leadership is reflective of the combination of our continued focus on high quality customer growth and leading client loyalty.

Now, let's take a look at our T chek fixed operating results, where Telus delivered another quarter of industry best wireline customer growth indeed.

Indeed, our team achieved strong fourth quarter Internet net additions of 36000, we also continue to drive healthy growth in our TV product line with industry, leading net additions of 23000 up 35% over the prior year, despite modestly higher churn.

Modest residential voice losses of 7000 again represented an industry best result straw.

Darren: Strong and leading security net additions of $23,000 further reflect the momentum with respect to our successful multi-product penetration strategy. Overall, our industry-leading external fixed net additions of $75,000 demonstrate the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services combined with our customer service excellence. These are buttressed by our ever-expanding broadband networks, our leading customer-centricity approach, as well as our strong and highly differentiated social capitalism attributes that truly underpin the strength of the Telus brand and culture in action in respect of our go-to-market activities. Notably, PCMag recognized Telus as the fastest internet service provider in Canada for the fourth consecutive year in 2023.

Strong and leading security net additions of 23000 further reflect the momentum with respect to our successful multi product penetration strategy.

Overall, our industry, leading external fixed net additions of 75000 demonstrate the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services combined with our customer service excellence.

These are buttressed by our ever expanding broadband networks are leading customer centricity approach as well as our strong and highly differentiated social capitalism attributes that truly underpin the strength of the Telus brand and culture inaction in respect of our go to <unk>.

Market activity.

Notably PC Mag recognized tell us as the fastest Internet service provider in Canada for the fourth consecutive year in 2023.

Darren: The accolades that we have won for the superiority of our broadband networks across both mobile and fixed illustrate the Telus team's steadfast commitment to connecting Canadians to the people and to the information that matters most. Furthermore, the generational broadband network investment that Telus has prudently made over the last decade will continue to drive extensive socioeconomic benefits for Canadians and communities from coast to coast, while underpinning the continued advancement of our operational and financial performance at the Telus organization. Let's turn now and look at Telus Business Solutions, or TBS, which continues to contribute meaningfully to the success of the wider Telus organization. TBS once again delivered another strong quarter with continued revenue and EBITDA growth. Impressively, TBS achieved its highest Q4 year-over-year EBITDA growth in the past three years.

The accolades that we have won for the superiority of our broadband networks across both mobile and fixed illustrate the telus team's steadfast commitment to connecting Canadian to the people enter the information that matter most.

Furthermore, the generation of broadband network investments that tell us. This prudently made over the last decade will continue to drive extensive socio economic benefit for Canadians and communities from coast to coast was underpinning the continued advancement of our operational.

And financial performance at the Telus organization.

Let's turn now and look at <unk> business solutions, or TBS, which continues to contribute meaningfully to the success of the wider <unk> organization.

TBS once again delivered another strong quarter with continued revenue and EBITDA grow impressively TBS achieved its highest Q4 year over year EBITDA growth over the past three years.

During the quarter GBS continued its strong momentum in SMB and secured several notable wins with commercial and public sector organizations across Canada accelerating the growth of both our core services and monetizing by G III private wireless network.

Darren: During the quarter, TBS continued its strong momentum in SMB and secured several notable wins with commercial and public sector organizations across Canada, accelerating the growth of both our core services and monetizing 5G through private wireless networks, connected worker, fleet, and IoT connectivity management solutions. Telus Agriculture and Consumer Goods, or TAC, has recently delivered the best back-to-back sales quarters on record in over three years for consumer goods and also realized the best quarter on record for digital animal agriculture. As we move into 2024, we are looking to build upon this positive momentum and drive accelerated financial contributions on a consolidated basis. To support the next chapter of our winning growth strategy and reflective of our commitment to use our technology and data services to lead the world in social capitalism, we recently moved our Telus Health business into TBS.

Connected worker fleet, and Iot connectivity management solutions.

<unk> agriculture, and consumer goods or Tac has recently delivered the best back to back sales quarters on record and over three years in consumer goods and also realize the best quarter on record for digital animal agriculture.

As we move into 2024, we're looking to build upon this positive momentum and drive accelerated financial contributions on a consolidated basis.

To support the next chapter of our winning growth strategy and reflective of our commitment to use our technology and data services to lead the world in social capitalism. We recently moved our Telus health business into TBS.

Darren: Similar to our earlier integration of TAC into TBS, this better positions our health business to leverage the expertise, the experience, and the high-performance culture and talent of our broader B2B team. Looking now at our Telus Health business, we achieved fourth-quarter revenues of $432 million, alongside 24% year over year EBITDA growth and delivered total annual revenues of $1.7 billion in 2023. We continue to execute on our global growth strategy and demonstrate our progress towards our goal to be the most trusted well-being company in the world, and this includes our health care services and programs now covering 70 million lives around the world, an increase of almost 2 million on a year-over-year basis. This also includes supporting health outcomes on 610 million digital health transactions during 2023, up 5% over last year. And this includes increasing our virtual care membership to 5.6 million, up more than 24% over the prior year.

Similar to our earlier integration of Tac into TBS this better positions, our health business to leverage the expertise the experience and high performance culture and talent of our broader <unk> teams.

Looking now at our Telus health business.

We achieved fourth quarter revenues of $432 million.

Alongside 24% year over year, EBITDA growth and deliver total annual revenues of $1 7 billion in.

In 2023.

We continue to execute on our global growth strategy and demonstrate our progress towards our goal to be the most trusted wellbeing company in the World and this includes our health care services and programs now covering 70 million lives around the world and increase.

We have almost $2 million on a year over year basis.

This includes supporting health outcomes, and 610 million digital health transaction during 2023 up five.

<unk>, 5% over last year and this includes increasing our virtual care membership to $5 6 million up more than 24% over the prior year.

Since acquiring <unk> in 2022, our team is committed to driving $427 million in annualized synergies by the end of 2025.

Darren: Since acquiring Lightworks in 2022, our team is committed to driving $427 million in annualized synergies by the end of 2025. This includes $327 million expected to be realized through operating cost synergies from continued integration and optimizing our organizational structure, our systems, and our real estate portfolio. In addition, we continue to anticipate $100 million or more from longer-term revenue synergies driven by cross-selling health services products within our TELUS Health customer base and throughout our TELUS portfolio of assets, including TELUS Business Solutions, TELUS Partner Solutions, TELUS Agriculture and Consumer Goods, and, obviously, TELUS International. To date, we've achieved $233 million in combined annualized synergies towards our overall objective of These synergies will allow us to reinvest in the growth of our business and improve our profitability while we focus on delivering efficient, secure, and best-in-class health and wellness solutions to our customers across the globe. Now, let's take a look at Telus International.

This includes $327 million is expected to be realized through operating cost synergies from continued integration and optimizing our organizational structure, our systems and our real estate portfolio.

In addition, we continue to anticipate a $100 million or more from longer term revenue synergies driven by cross selling health services products within our <unk> customer base and throughout our tellers portfolio of assets, including <unk> business solutions.

<unk> partner solutions, <unk>, agriculture, and consumer goods, and obviously Telus international.

To date, we've achieved $233 million in combined annualized synergies towards our overall objective of 427 million <unk>.

These synergies will allow us to reinvest in the growth of our business and improve our profitability, whilst we focus on delivering efficient secure and best in class health and wellness solutions to our customers across the globe.

Now, let's take a look at Telus International.

Darren: Earlier today, TI reported its fourth quarter and full year 2023 results with solid revenue growth, notwithstanding a continued challenging operating environment. Importantly, TI delivered on its commitment to improve profitability in the second half of the year, exiting the year with a strong margin profile more aligned with its historical trend. Our synergistic relationship offered incrementally more opportunities to partner with TI, alongside continued momentum fueled by the AI solutions that TI provides to companies like Google, its second largest client, offsetting an otherwise softer demand environment. The improvement in TI's profitability also reflected meaningful cost efficiency efforts implemented during the year, realigning its cost base to better meet the near-term demand environment. Over the longer term, TI remains a compelling growth story with meaningful opportunities driven by digital transformation underpinned by robust and highly differentiated AI capabilities. Dagger's going to provide further commentary on both T-Tech and Telus International's results in just a moment.

Earlier today <unk> reported its fourth quarter and full year 2023 results with solid revenue growth notwithstanding a continued challenging operating environment.

<unk> delivered on its commitment to improve profitability in the second half of the year exiting the year with a strong margin profile more aligned with its historical trend.

Our synergistic relationship offered incrementally more opportunities to partner with Ti.

Alongside continued momentum fueled by the AI solutions that Ti provides the companies like Google <unk> second largest client offsetting and otherwise softer demand environment.

The improvement in <unk> profitability also reflected meaningful cost efficiency efforts implemented during the year realigning its cost base to better meet the near term demand environment.

Over the longer term <unk> remains a compelling growth story with meaningful opportunities driven by digital transformation underpinned by robust and highly differentiated AI capabilities.

Doug is going to provide further commentary on both T Chek and Telus International's results in just a moment.

Darren: Our team's ability to consistently drive profitable growth over the longer term on the back of our differentiated asset base, best-in-class customer experience, and world-leading networks alongside our unique growth businesses provides us with confidence in the robust outlook for our business and delivering on the annual targets that we've announced for 2024. These include T-TEC operating revenues and adjusted EBITDA increases of 2-4% and 5.5-7.5%, respectively. It includes consolidated CapEx of approximately $2.6 billion, and it includes consolidated free cash flow of approximately $2.3 billion, up circa 30% over 2023, supported by strong EBITDA growth and stable capital investment. On a consolidated basis, our 2024 performance will be supported by the annual target TI announced this morning. This includes revenue and EBITDA growth of 3% to 5% and 7% to 10%, respectively, supporting robust profitability and leading free cash flow yield in line with TI's historical average. Combining our outlook for T-TECH and TI, we expect consolidated operating revenues and adjusted EBITDA growth rates similar to those that were outlined for the T-TECH segment.

Our team's ability to consistently drive profitable growth over the longer term on the back of our differentiated asset base best in class customer experience and world leading networks alongside our unique growth businesses provides us with confidence in the robust outlook for our <unk>.

Business and delivering on the annual targets that we've announced for 2024. These include <unk> operating revenues and adjusted EBITDA increases of 2% to 4% and five that five to seven 5% respectively.

It includes consolidated Capex of approximately $2 6 billion.

It includes consolidated free cash flow of approximately $2 3 billion.

Up circa 30% over 2023 supported by strong EBITDA growth and stable capital investments.

On a consolidated basis, our 2024 performance will be supported by the annual targets Ti announced this morning. This includes revenue and EBITDA growth of 3% to 5% and 7% to 10% respectively.

<unk> robust profitability and leading free cash flow yield in line with <unk> historical average.

Combining our outlook for T Chek and Ti, we expect consolidated operating revenues and adjusted EBITDA growth rates similar to those that were outlined for the <unk> segment.

Darren: Furthermore, the unparalleled skill, innovation, and, of course, the execution excellence of our team on our consistent and winning strategy underpins our industry-leading multi-year dividend growth program, now in its 14th year through to the end of 2025, and we look forward to communicating our multi-year dividend growth program at our AGM in May. To further buttress the sustainability of our consistently strong performance against the backdrop of the rapid transformation in our industry due to the evolving regulatory, competitive, and macroeconomic environment, we continue to focus on executing extensive efficiency and effectiveness initiatives across the Telus organization. Importantly, the transformational investments we have prudently made over the course of more than a decade in building the best culture and supporting industry-leading customer experiences over our globally leading wireless and pure fiber broadband networks are enabling the progression of our accelerated plans to digitally revolutionize our business and further streamline our operating costs because this organization leads on digital, and this organization has a unique asset in TI, our team's grit.

Furthermore, the unparalleled scale innovation and of course, the execution excellence of our team on our consistent and winning strategy underpinned our industry, leading multi year dividend growth program now in its 14th year through to the end of 2025 and.

We look forward to communicating our multiyear dividend growth program at our AGM in May.

To further buttress the sustainability of our consistently strong performance against the backdrop of the rapid transformation in our industry due to the evolving regulatory competitive and macroeconomic environment. We continue to focus on executing extensive efficiency and effectiveness initiatives.

Across the Telus organization.

Importantly, the transformational investments we have prudently made over the course of more than a decade and building the best culture, and supporting industry, leading customer experiences over our globally, leading wireless and pure fiber broadband networks are enabling the progression of our.

Our accelerated plan the digitally revolutionize our business and further streamline our operating cost because this organization leads on digital and this organization has a unique asset and Ti.

Our team's grit resilience and ability to embrace change and continuously evolve the way that we operate have enabled us to achieve our targeted team member reductions in 2023 with the full run rate of annualized cost savings expected to be realized in the second quarter.

Darren: Resilience and ability to embrace change and continuously evolve the way that we operate have enabled us to achieve our targeted team member reductions in 2023, with the full run rate of annualized cost savings expected to be realized in the second quarter of 2024. Furthermore, our intensified focus on cost efficiency is continuing into 2024, targeting restructuring investments of approximately $300 million over the course of the year, although these come with many difficult decisions. We continue to leverage our decades-long track record of successfully navigating exogenous factors in order to rise to current challenges and future-proof our business and deliver industry-leading operational, financial, and value creation results. Against the backdrop of these ongoing challenges, our Telus family continues to bring our caring culture to life. Last year, our team members and retirees logged an unprecedented 1.5 million hours of volunteerism in communities across the globe.

<unk> of 2024.

Furthermore, our intensified focus on cost efficiency is continuing into 2020 for targeting restructuring investment of approximately $300 million.

Over the course of the year.

Whilst these come with many difficult decisions, we continue to leverage our decade long track record of successfully navigating exogenous factors in order to rise to the current challenges and future proof, our business and deliver industry leading operational.

Joe and value creation results.

Against the backdrop of these ongoing challenges our <unk> family continues to bring our caring culture to life.

Last year, our team members and retirees logged an unprecedented $1 5 million hours of volunteerism and communities across the globe.

Darren: This is an unparalleled accomplishment that is more than any other company in the world; do impart our team's unsurpassed dedication to putting both our communities and customers first. The Telus brand has increased in value from $10.3 billion in 2023 to circa $11.5 billion today, as ranked in the Brand Finance 2024 Global Report. Notably, Telus moved up two places to become the most valuable telco brand in Canada and the eighth most valuable brand nationally, and to think this brand was worth $600 million back in 2000. Myself and our entire leadership team, as well as the Telus Board of Directors, remain exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of our stakeholders. And on that note, I'll turn the call over to Uncle Doug.

Is an unparalleled accomplishment that is more than any other company in the world.

Due in part to our team's unsurpassed dedication deporting, both our communities and customers first the Telus brand has increased in value from $10 3 billion. In 2023. This circa 11 $5 billion today as rank in the brand finance 2024.

For Global report.

Notably tell us moved up two places to become the most valuable telco brand in Canada, and the eight most valuable brand nationally.

And to think this brand was worth $600 million back in 2000.

Myself and our entire leadership team as well as the Telus Board of directors remain exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of our stakeholders and on that note I will turn the call over to uncle Doug. Thank.

Thank you Darren and Hello, everyone in the fourth quarter, our team achieved strong operational and financial results supported by our long standing commitment to drive profitable customer growth our product diversity execution excellence, our leading customer service and our ongoing focus on efficiency.

Doug: Thank you, Darren, and hello, everyone. In the fourth quarter, our team achieved strong operational and financial results, supported by our longstanding commitment to drive profitable customer growth, our product diversity, execution, and excellence, our leading customer service, and our ongoing focus on efficiency and effectiveness. In mobility, continued mobile phone and connected device subscriber additions drove network revenue higher by 3.8 percent, along with moderating roaming revenue growth. We expect a highly competitive environment will continue to pressurize our pricing, along with the lapping of the roaming recovery that we experienced in the first half of 2023. Importantly, we continue to focus on AMPU to drive the right economic outcome. Our ongoing focus on efficiency and effectiveness will help drive sustainable EVTA growth and margin increase.

Thank goodness and mobility continue.

<unk> mobile phone and connected device subscriber additions drove network revenue higher by three 8% along with the moderating roaming revenue growth.

We expect the highly competitive environment will continue to pressurize, our who along with the lapping of the roaming recovery that we experienced in the first half of 2023.

Importantly, we continue to focus on <unk> to drive the right economic outcomes, our ongoing focus on efficiency and effectiveness will help drive sustainable EBITDA growth and margin accretion.

Our strong <unk> performance is further evidenced by our mobility direct margin contribution increasing by nearly 5% in the quarter.

Fixed data services grew three 6% year over year, driven by strong customer growth across Internet security television.

And higher but moderating revenue per customer.

Health services revenue increased by five 1% over the prior period, primarily driven by demand for our products and services and continued adoption of our virtual care solutions.

Doug: Our strong AMPU performance is further evidenced by our Mobility Direct Margin contribution increasing by nearly 5% in the quarter. Fixed data services grew 3.6% year-over-year, driven by strong customer growth across internet, security, and TV, and higher but moderating revenue per customer. Health services revenue increased by 5.1% over the prior period, primarily driven by demand for our products and services and continued adoption of our virtual care solution.

At the segment level <unk> operating revenues were up two 6%, while <unk> adjusted EBITDA increased 8% and adjusted EBITDA margin expanded 190 basis points supported through our efficiency.

So graham flow through.

<unk> operating revenues from our existing customers were higher by six 8% year over year, primarily from growth in our tech and games E Commerce, Fintech and other clients arising from additional services provided to existing customers and new customers added since the prior year, including those from the ACA.

Position of Willow tree.

Doug: At the segment level, T-TEC operating revenues are up 2.6%, while T-TEC adjusted EBITDA increased 8%, and the adjusted EBITDA margin expanded 190 basis points supported through our efficiency program flow-through. In DLCX, operating revenues from existing customers were higher by 6.8% year-over-year, primarily due to growth in our tech and games, e-commerce, fintech, and other clients arising from additional services provided to existing customers and new customers added since the prior year, including those from the acquisition of WillowTree. A strengthening of both the European euro and US dollar against the Canadian dollar also benefited during this period.

A strengthening of both the European Euro and U S dollar against the Canadian dollar also benefited in the period.

During the fourth quarter, our Telus International team continued to execute against its significant efficiency plans and meaningful of right sizing to its cost structure, notably <unk> adjusted EBITDA was up 19% or closer to 6% when excluding the one time.

Earn out adjustment, while margins improved 120 basis points year over year heading into 2020 for Gis focus on efficiency and <unk>.

Organic growth will continue as we address some of the continued macroeconomic pressures.

Overall consolidated operating revenues increased by <unk>, 6% year over year and adjusted EBITDA grew by nine 4% consolidated net income was up 17% year over year, while basic EPS was up 18%.

Doug: During the fourth quarter, our Telus international team continued to execute against its significant efficiency plans and meaningful right sizing to its cost structure. Notably, DLCX adjusted EBITDA was up 19% or closer to 6% when excluding the one-time earn out adjustment, while margins improved 120 basis points year-over-year. Heading into 2024, GI's focus on efficiency and organic growth will continue as we address some of the continued macroeconomic pressure. Overall, consolidated operating revenues increased by 2.6% year-over-year, and adjusted EVGA grew by 9.4%. Consolidated net income was up 17% year-over-year, while basic EPS was up 18%. On an adjusted basis, net income was slightly up by just under 1%, while EPS was relatively flat. Free cash flow of $590 million in the fourth quarter increased by $267 million, driven by increased EBITDA growth, lower capital expenditures, and taxes paid, partially offset by an increase in interest payments and higher restructuring disbursements.

On an adjusted basis net income was slightly up by just under 1%, while EPS was relatively flat.

Free cash flow of $590 million in the fourth quarter increased by $267 million driven by increased EBITDA growth lower capital expenditures and taxes paid partially offset by an increase in interest payments and higher restructuring disbursements.

For the full year free cash flow of approximately $1 8 million billion came in higher than our updated target of $1 five.

The result was higher primarily for two items the increase in restructuring.

<unk> that we had deferred until 2024 payments, which will flow into the first quarter and partially the second quarter. In addition, the second was the handset financing of approximately $75 million where promotions in the period were more focused on device plans instead of sorry Ray.

Plans instead of device plans.

Looking forward to our financial targets for 2024 and leading up.

The period as Darren highlighted our <unk> revenue growth will grow by two 4% and key tack adjusted growth of EBITDA of $5, 5% to 75%.

Our financial outlook reflects continued healthy growth, while our tour our core <unk> business as we maintain our consistent focus on profitable growth driven by continued demand for superior bundled offerings over our leading networks.

Doug: For the full year, free cash flow of approximately $1.8 billion came in higher than our updated target of $1.5 billion. The result was higher primarily due to two items. The increase in the restructuring reserve that we had deferred until 2024 of payments, which will flow into the first quarter and partially the second quarter. In addition, the second was the handset financing of approximately $75 million, where promotions in the period were more focused on device plans instead of, sorry, rate plans instead of device plans. Looking forward to our financial targets for 2024 and leading off the period, as Darren highlighted, our T-TEC revenue growth will go by 2 to 4% and T-TEC adjusted growth of EBITDA of 5.5 to 7.5%. Our financial outlook reflects continued healthy growth in our core T-Tech business as we maintain our consistent focus on profitable growth driven by continued demand for superior bundled offerings over our leading network.

Our strategic focus to driving increased efficiency and effectiveness will also contribute to our financial outlook.

Furthermore, in 2024, we anticipate improving financial contributions from Telus International as well as Telus health and are are tell us agriculture and consumer goods.

Holidayed capital expenditures are targeted to remain stable at $2 6 billion, representing a consolidated capital intensity ratio of 13%, which is a historic low for Telus and.

In addition, we have made we have embarked $100 million earmarked 100 million for capital for real estate development initiatives similar to 2023, as we progress our copper decommissioning program and work towards delivering our strategy strategy and co developing certain surplus real estate assets within our footprint.

Lastly, consolidated free cash flow for 2024 is forecasted to be $2 3 billion, driven by higher EBITDA and stable capex.

The strong growth includes higher cash restructuring payments related to our efforts undertaken in 2023 as discussed earlier as well as incremental restructuring targeted in 2020 for putting it all together, our combined with and combined with Gis outlook announced earlier today the consolidate on a consolidated.

Doug: Our strategic focus to drive increased efficiency and effectiveness will also contribute to our financial outlook. Furthermore, in 2024, we anticipate improving financial contributions from Telus International, as well as Telus Health and our Telus Agriculture and Consumer Goods business. Consolidated capital expenditures are targeted to remain stable at $2.6 billion, representing a consolidated capital intensity ratio of 13%, which is a historic low for Telus.

Basis, we expect operating revenues and adjusted EBITDA to grow similar to that of T. Chek.

As we progress through 2024, we anticipate our adjusted EBITDA growth to build as the year progresses.

A detailed list of our assumptions for 2024 are set out in our annual MD&A released today overall, we remain bullish on our ability to continue generating strong free cash flow for the years to come and benefiting from our industry, leading growth profile that consistently showcases our superior asset mix.

Our leading customer service and our operational execution excellence.

The strong position further supports our industry, leading dividend growth program in place through 2025 and beyond along with the Delevering of our balance sheet, while continuing to take to make key strategic investments and continuing advancing our winning growth strategy with that Robert back to you.

Doug: In addition, we have embarked on $100 million, earmarked, sorry, $100 million for capital for real estate development initiatives, similar to 2023, as we progress our cooperative decommissioning program and work towards delivering our strategy and co-developing certain surplus real estate assets within our footprint. Lastly, consolidated free cash flow for 2024 is forecasted to be $2.3 billion, driven by higher EBITDA and stable capex. The strong growth includes higher cash restructuring payments related to our efforts undertaken in 2023, as discussed earlier, as well as incremental restructuring targeted in 2024. Putting it all together, and combined with TI's outlook announced earlier today, on a consolidated basis, we expect operating revenues and adjusted EBIT GAE to grow similar to that of TTEC. As we progress through 2024, we anticipate our adjusted EBITDA growth to build as the year progresses. A detailed list of our assumptions for 2024 is set out in our annual MD&A release today.

Thanks, Doug Me highlights. Please proceed with questions.

Of course first question comes from Vince Valentini.

From TD Securities. Please go ahead.

Thanks very much.

The first thing I want to ask is about the drip your free cash flow growth has been very strong and now seems to fully cover the dividend or we're getting close to removing the drip discount Doug.

Yes, we are assessing that as we speak we're going to look to the completion of the next spectrum auction, but.

We are definitely considering that as a future near mid term off opportunity.

Great and related to free cash flow one follow up.

As you May have noticed there is some working capital gyrations in.

Some places in the industry.

Your free cash flow definition is very clean, but you do not include working capital any color you can give there on 2024 is there any notable increase in working capital usage that we should be aware of.

No there isn't we actually add youll see in our statements a significant decline in accounts payable.

Robert Mitchell: Overall, we remain bullish on our ability to continue generating strong free cash flow for the years to come, benefiting from our industry-leading growth profile that consistently showcases our superior asset mix, our leading customer service, and our operational execution. The strong position further supports our industry-leading dividend growth program in place through 2025 and beyond, along with the delevering of our balance sheet while continuing to make key strategic investments and further advancing our winning growth strategy. With that, Robert, back to you.

At the end of 2023 based on our capital acceleration from the year before we do not see any any blips in 2024.

Great. Thank you.

Next question please.

Yes next question comes from Maher Yaghi from Scotiabank. Please go ahead.

Great. Thank you for taking my question.

We saw a public mobile quite active in the marketplace in Q4 and I suspect.

This helped you are loading in the quarter.

We also saw one of your competitors had a significant amount of prepaid postpaid switch.

Switching.

So.

Well.

Probably W. <unk> Darren could you talk a little bit about the comparative metrics on <unk>.

Operator: Thanks, Doug. Mihaly, let's please proceed with questions. Of course, the first question comes from Vince Valentini from TD Securities. Please go ahead. Thanks very much. The first thing I want to ask is about the DRIP.

For public mobile versus your existing wireless space.

Just to be able to understand the impact and the changes.

Doug: Your free cash flow growth has been very strong and now seems to fully cover the dividend. Are we getting close to removing the DRIP discount, Doug? Yes, we are assessing that as we speak. We're going to look to the completion of the next spectrum auction, but we are definitely considering that as a future near-midterm opportunity. Great.

The mix for <unk>.

Future profitability.

The second question I have is on health services.

We're seeing probably.

And improving momentum here in the business.

What would you like to see for the segment in terms of achievements in 2020 forward for revenue growth.

Doug: And related to precaution, one follow-up, as you may have noticed, there's some working capital gyrations, and some places in the industry, your free cash flow definition is very clean, but you do not include working capital. Any color you can give on 2024, is there any notable increase in working capital usage that we should be aware of? No, there isn't.

And any kind of.

Information on EBITDA margins or what you'd like see in EBITDA margins in 2000 and for that would be helpful. Thank you.

Okay. Thanks Barbara.

Good questions.

I think al.

I'll, let <unk> answer the first question.

A pretty good news story, and particularly as it relates to the quality of our loading the integrity between post and three the digital construct.

Operator: We actually had, you'll see in our statements, a significant decline in accounts payable at the end of 2023 based on our capital acceleration from the year before. We do not see any blips in 2024. Great, thank you. Your next question, please. Yes, the next question comes from Maher Yaghi from Scotiabank. Please go ahead.

Public and what that portends at an <unk> level, so I'll hand over to Daniel for that end Nebiim.

I'll, let you handle what our expectations are for health in 2024, I'm sure there'll be both laudable and very ambitious and exciting so Daniel intervene over to both of you.

Okay. Thank you Darren and thanks for the question.

Thank public one of the things.

Maher Yaghi: Great, thank you for taking my question. We saw public mobile quite active in the marketplace in Q4, and I suspect that this helped your load in the quarter. We also saw one of your competitors had a significant amount of prepaid to full-spade switching. So while this is probably diluted to ARPU, Darren, could you talk a little bit about the comparative metrics on AMPU for public mobile versus your existing wireless space, just to be able to understand the impact and the changes of the mix for future profitability? And the second question I have is about health services.

Really highlight is that.

We think about it internally as our IPO, our initial public offering because it is a new offering it's our first it's the first digital only subscription offering and it has resonated in the market and it's resonated in a demographic in a space that I think that we've been underpenetrated in.

And I think you can see that in our in our prepaid results.

What you can actually glean from that though is that when you load a public mobile customer because it is absolutely digital only we get a six times improvement on <unk> relative to a traditional subscriber and so.

Maher Yaghi: We're probably seeing an improving momentum here in the business. What would you like to see for this segment in terms of achievement in 2024 and for revenue growth and any kind of information on EBITDA margin, or what you'd like to see in EBITDA margins in 24, that would be helpful. Thank you.

That is incredibly accretive in our <unk> story.

And I would say that the additional element of that is that we have been very focused on leveraging the assets that we have that are differentiated relative to our peers in the market and one of those is Telus international.

Darren: Okay, thanks, Maher, for both questions. I think I'll, I'll let Zainal answer the first question. It's a pretty good news story, particularly as it relates to the quality of our loading, the integrity between post and pre, the digital construct of public, and what that portends at an AMPU level. So I'll hand over to Zainal for that, and Naveen, I'll let you handle what our expectations are for health in 2024. Sure, they'll be both laudable and very ambitious and exciting, so Zainal and Naveen, over to you both.

By leveraging the digital capabilities of Telus International we're able to advance these kinds of offers.

That are unique to the market and that can get a lot of traction going forward. So we think that this is a great growth area for our business. It's resonating in terms of the digital only subscription model, it's a very seamless experience for customers through that journey.

Zainal: Thank you, Darren. And Maher, thanks for the question. I think public, one of the things to really highlight is that, you know, we think about it internally as our IPO, our initial public offering, because it is a new offering. It's our first, it's the first digital-only subscription offering, and it has resonated in the market. And it's resonated in a demographic and a space that I think that we've been under-penetrated in in the past, and I What you can actually glean from that, though, is that when you load a public mobile customer, because it is absolutely digital only, we get a six times improvement on Ampu relative to a traditional subscriber.

We get a lot of great feedback on the journey and we think theres good upside potential and it will continue to support our <unk> growth.

Okay.

Yes.

Yeah.

Sure.

And indeed.

Health ambitions are laudable and exciting so.

We're very excited to bring the teams together across our BTB.

Portfolio I think it's really going to give us an opportunity to amplify.

Our cross sell.

<unk>.

Ambitions and really drive some highly differentiated growth opportunities I think it's important to remember that.

For the health team today, we operate in 160 countries and so a big part of our.

Increased growth momentum that we're planning in 2024 is really around <unk>.

Leveraging our presence in those 160 countries today, and driving improved product penetration as well as improved customer expansion.

Zainal: And so that is incredibly accretive to our Ampu story. And I would say that the additional element of that is that we have been very focused on leveraging the assets that we have that are differentiated relative to our peers in the market. And one of those is Telus International.

In those geographies, our health and wellbeing solutions are really unmatched in the market today, and we continue to develop improved capabilities and again that will be <unk>.

Zainal: And by leveraging the digital capabilities of Telus International, we're able to offer these kinds of offers that are unique to the market and that can get a lot of traction going forward. So, you know, we think that this is a great growth area for our business. It's responding in terms of the digital-only subscription model. It's a very seamless experience for customers through the journey. We get a lot of great feedback on the journey, and we think there's good upside potential, and it will continue to support our Ampu grower and me. Over to you.

Significant focus in 2024 around accelerating the development of those products and services.

And in addition to that in 2024, we're going to be.

Looking to leverage the significant investments, we did in sales and distribution channels.

Strengths to drive topline revenue, we're going to be focused aggressively on improving our margins by bringing in.

Much more automation and AI capabilities by leveraging our Telus International team will.

We will do some tuck in acquisitions, where it makes sense.

We're very focused on development of our industry, leading mental health products and services.

Naveen: And indeed, our health ambitions are laudable and exciting. So we're very excited to bring the teams together across our B2B portfolio. I think it's really going to give us an opportunity to amplify our cross-sell ambitions and really drive some highly differentiated growth opportunities. I think it's important to remember that for the health team today, we operate in 160 countries, and so a big part of our increased growth momentum that we're planning in 2024 is really around leveraging our presence in those 160 countries today and driving improved product penetration, as well as improved customer expansion, in those geographies. Our health and well-being solutions are really unmatched in the market today, and we continue to develop improved capabilities.

And we have.

The opportunity to intelligently and on an anonymised basis.

Monetize vast amounts of data so we'll be looking at what we can do in that regard and provide additional value through analytics and insights.

In terms of the Lifeworks integration as Darren mentioned.

$233 million in synergies on a plan of $427 million and so 2024 is a lot about.

Continuing to drive those synergies continue to drive.

EBITDA margin expansion and.

As we can.

Continue to scale this asset.

There is a significant.

A significant opportunity for us to show.

The significant value of this business adds and how it contributes to tell us this asset mix and positively.

Naveen: And again, that'll be a significant focus in 2024 around accelerating the development of those products and services. And in addition to that, in 2024, we're going to be looking to leverage the significant investments we made in sales and distribution channel strengths to drive top-line revenue. We're going to be focused aggressively on improving our margins by bringing in much more automation and AI capabilities by leveraging our Telus International team. And we'll do some tuck-in acquisitions where it makes sense. We're very focused on the development of our industry-leading mental health products and services, and we have the opportunity to intelligently and on an anonymized basis monetize vast amounts of data.

Differentiate in terms of the valuation it contributes to tell us in terms of specific goals, where we're definitely looking for double digit.

EBITDA contribution and significant.

Expansion on our cash contribution from this business <unk>.

While that sounds really exciting levine.

Sure liked your trajectory on 11% EBITDA growth in Q2, 20% EBITDA growth in Q3, 24% EBITDA growth in Q4, so sure would be disappointing not to hit circa 20% in 2024, given your leadership the cross selling opportunities the cost synergy opportunities in the <unk>.

I support Robert Let's go to the next question. Thanks, Mark Thank you Bob.

Next question please.

Yes of course, just before we go to the next question I would like to remind everyone to queue up for a question. Please press zero one now.

Darren: So, we'll be looking at what we can do in that regard and provide additional value through analytics and insights. In terms of the LifeWorks integration, as Darren mentioned, we're about $233 million of synergies on a plan of $427 million. And so, 2024 is a lot about continuing to drive those synergies, continuing to drive EBITDA margin expansion. And as we continue to scale this asset, there's a significant opportunity for us to show the significant value this business adds and how it contributes to Telus' asset mix and positively differentiates in terms of the valuation it contributes to Telus. So, in terms of specific goals, we're definitely looking for double-digit EBITDA contribution and significant expansion on our cash contribution from this, dot Qdirt. Wow, that sounds really exciting, Naveen. Sure, like your trajectory on 11% EBITDA growth in Q2, 20% EBITDA growth in Q3, 24% EBITDA growth in Q4. So it would be disappointing not to hit circa 20% in 2024, given your leadership, the cross-selling opportunities, the cost synergy opportunities, and the TI support. Robert, let's go to the next question. Thanks, Maher. Thank you both.

The next question comes from Jeremy <unk> from <unk>. Please go ahead.

Hi, Thanks for taking my questions just following on with your questions.

And comments.

I think towards the end of last year, you were thinking more about deleveraging versus maybe.

Historically, you've been spending more on M&A, if we can maybe reiterate.

If deleveraging is still top of mind at this point that if you have set the deleveraging targets obviously, depending on your decision on the drip and then the second question.

If you can maybe provide a bit more color on long term fiber potential in copper decommissioning, we've had global players talking about longer term fiber capex intensity in the 10% range is that something you are also seeing longer term. Thank you.

Yes, sorry.

If you are Doug just jumped in.

Okay.

On your first question, we will continue to Delever in 2024, it will be a little slower than we expect subsequent to 'twenty four with having to do the two spectrum auction payments in 2024 is our estimate.

So I would say, yes, we're going to still on a positive trajectory based on the strength of our free cash flow, but it'll be a bit slower in 'twenty, four and accelerate a bit more into 'twenty five and beyond on M&A, we'll continue with strategic M&A.

And I would say.

At this moment, we don't anticipated impact on leverage at all and we do have a amount built into our plan and so far tracking.

Great and Tony why don't you talk about copper decommissioning sure Hi, Jerome.

As you will have same tier fibers on slide <unk> deployments now cover over $3 3 million premises in 86%.

Operator: May I have the next question, please? Yes, of course. Just before we get to the next question, I would like to remind everyone to queue up for a question. Please press 01 now.

The Canadian population, respectively, we surpassed actively $1 6 million pure fiber customers across BC, Alberta, and Quebec, which reflects a global leading penetration of bill footprint build penetration measure that we think sets the bar for what good looks like so with that.

Operator: And the next question comes from Jérôme Dubreuil from Desjardins. Please go ahead. Hi, thanks for taking my questions. I'm just following on with your questions and comments. I think toward the end of last year, we were thinking more about deleveraging versus maybe, historically, you've been spending more on M&A. If you can maybe reiterate, if deleveraging is still top of mind at this point, and if you have set deleveraging targets, obviously, depending on your decision on the DRIP. And then, second question: if you can maybe provide a bit more color on long-term fiber potential and copper decommissioning.

Impressive fiber investment we're seeing grades.

Strategy returns.

Churn performance on the pure private places less than 1% and has been for 15 of the last 16 quarters.

It presents a great product intensity opportunity for heartland businesses that far surpasses other networks with a coker or covenants.

Combined with <unk>, we got an impressive broadband network resiliency of homes and businesses and we support higher value loading.

Which we saw in Q4 of 12% year over year increase in the base penetration about one gig plus plans.

And of course, the fiber is really <unk>.

Accentuating the future proofing as Internet bandwidth demands continue to increase our pure fiber can easily accommodate higher speeds with minimal incremental investment per subscriber a very different picture from those networks on legacy copper coax.

Jerome Dubreuil: We've had global players talking about longer-term fiber capex intensity in the 10% range. Is that something you are also seeing longer term? Yeah. No, if you want Doug, just jump in now, fire away.

Which have a much more costly journey of investment and upgrades required.

Talking about the exciting corporate retirement opportunity this represents.

Doug: On your first question, we will continue to de-lever in 2024, but it will be a little slower than we expect subsequent to 2024 with having to make the two spectrum auction payments in 2024, our estimate. And so I would say yes, we're still on a positive trajectory based on the strength of our free cash flow. But it'll be a bit slower in 2024 and accelerate a bit more into 2025 and beyond.

We decommissioned in 2023 14 central offices, and the Copa serving areas they service.

And that presents a unique and differentiated real estate development opportunity for our business. So lets talk about urban mining as we like to call. It.

We have provided.

The capability in multiple geographies and Victoria Edmondson mulatto mainland and we determined that we can create a profitable transformation of this slide.

Copper asset.

And this paves the way for analog and real estate opportunities and importantly, supporting critical social needs through the delivery of affordable housing in the hearts of the communities we serve and.

In 2024, we aim to reach our 25 Central office and associated service centers, the corporate retirement and opening up the opportunity of urban mining building on the <unk> as I mentioned, we achieved in 2023. So I think it represents an exciting path for us.

Tony: On M&A, we'll continue with strategic M&A. And I would say at this moment, we don't anticipate an impact on leverage at all. And we do have a certain amount built into our plan, and so far, we are tracking to that. Great.

And then we're exploring some innovative ideas around how we can.

Continue to build out in those markets not yet deployed with pure fiber and we'll have more to say on that subject at a later date or there are some exciting.

Tony: And Tony, why don't you talk about copper decommissioning? Sure. Hi Jerome.

Partnerships that we're developing which I think will help us to continue to capitalize on the midstream benefits fiber represents.

And of course, the real quickly another copper provides significant positive opportunities on the environmental front as well okay. Robert.

Tony: As you will have seen, pure fiber and 5G deployments now cover over 3.2 million premises and 86% of the Canadian population, respectively. We have exceeded 1.6 million pure fiber customers across BC, Alberta, and Quebec, which reflects a global leading penetration of the built footprint, a built penetration measure that we think sets the bar for what good looks like. So with that impressive fiber investment, we're seeing great strategy returns. Our churn performance on a pure fiber base is less than 1% and has been so for 15 of the last 16 quarters.

Thanks, Jerome and inspection business.

Yes of course of the next question comes from Stephanie price from <unk>.

CIBC World markets. Please go ahead.

Thank you.

I was hoping that just given the increase in spend.

Going.

Going over to <unk> CFO and he can talk a little bit about how you see that release.

Evolving over time.

And then for my second question, hoping you could touch any additional restructuring costs of roughly $300 million in 2024, and a tougher economic environment do we assume more of an annual cadence to restructuring at <unk> to optimize the business and related Doug I think you mentioned that you expect EBITDA growth to build over the year.

Tony: It presents a great product intensity opportunity for homes and businesses that far surpasses other networks, be they corporate or co-op. Combined with 5G, we get an impressive broadband network resiliency for homes and businesses, and we support higher value loading, for which we saw in Q4 a 12% year-over-year increase in the base penetration of our 1G plus plan. And of course, the fiber is really accentuating the future-proofing as internet bandwidth demands continue to increase. Our pure fiber can easily accommodate higher speeds with minimal incremental investment per subscriber.

And that might be restructuring related as well. Thank you.

Zeno given.

The criticality of the relationship between our consumer business and Ti why don't you speak to that and Jeff you are on the call.

Have you got a few things that you want to top up on post San Jose answer I think that would be great.

Doug you and I can handle restructuring.

Okay. Thank you. Thanks, Stephanie great Great question, I think you'll definitely see us as I mentioned around the public review as well that we're going to continue to synergize and leverage ti effectively across our business and we.

Tony: A very different picture from those networks on legacy copper or coax, which have a much more costly journey of investment and upgrade required. Talking about the exciting copper retirement opportunity this represents, we decommissioned in 2023 14 central offices and the copper serving areas they serviced, and that presents a unique and differentiated real estate development opportunity for our business. So let's talk about urban mining, as we like to call it. We've provided and proved the capability in multiple geographies in Victoria, Edmonton, and the Lower Mainland. We've determined that we can create a profitable transformation of this retired copper asset, and this paves the way for unlocking real estate opportunities and, importantly, supporting critical social needs through the delivery of affordable housing in the hearts of the communities we serve.

You can see that there are ample opportunities from an end to end perspective customers are wanting more digitized solutions and what we're doing with Ti is also ensuring that we build exciting new product roadmap capabilities that we can own ourselves.

We can license from an end to end perspective to other peers in the industry globally and that reduce our costs and create an opportunity for us to really own our destiny in terms of our product roadmaps. So youll see more of that to comment if it accelerates our opportune.

<unk>.

To drive those gains because we're not dependent on a on a third party we have a synergistic relationship with Ti across development and then on the on the overall cost per customer perspective, leveraging ti enables us to support the demands of our customers and our product intensity.

Tony: In 2024, we aim to retire a further 25 central offices and associated service areas for copper retirement and open up the opportunity of urban mining, building on the 14, as I mentioned, we achieved in 2023. So I think it represents an exciting path for us. And then we're exploring some innovative ideas around how we can continue to build out in those markets not yet deployed with pure fiber. And we'll have more to say on that subject at a later date, but there are some exciting partnerships that we're developing, which I think will help us to continue to capitalize on the extreme benefits fiber represents. And, of course, the recycling of copper provides significant positive opportunities on the environmental front as well. Okay, Robert.

Environment, we're serving our customers across numerous products and we're able to leverage ti to scale those capabilities and provide quality and excellence in our customer service profile and so while we're going to continue to digitize, our customer support and and ensure that.

We build a more streamline customer journeys as we've done with public mobile we're also able to lean on our relationship with Ti and the depth of experience in Ti in terms of supporting our business over years and over the transitions, we've made from things like copper to fiber.

And from new products that we've offered in the market. So I think youll continue to see that synergistic relationship off mall and Youll see it.

Bi directional with respect to supporting us on our growth and ample objectives and are supporting Ti in terms of leveraging those solutions more globally, maybe Jeff you wanted to top up.

Robert Mitchell: Thanks, Jerome. Any last questions? Yes, of course. The next question comes from Stephanie Price from CIBC World Markets. Please go ahead.

Stephanie Price: Thank you. I was hoping that just given the increasing spend with TI, and going over to TI as CFO, maybe you could talk a little bit about how you see that relationship with TI evolving over time. And then for my second question, I hope you can touch on the additional restructuring costs of roughly $300 million in 2024. In a tougher economic environment, do we assume more of an annual cadence for restructuring as you look to optimize the business?

Sure thing.

Stephanie nice to hear your voice again.

A few things I would add.

The symbiotic relationship between Telus and Ti is by no means new that has been in place as part of our originating thesis that first instance, Telus international enabling tell us its digital transformation and delighting customers through the combination of talent and technology, but at the same time tell us.

International then.

Repatriating that.

Learnings from serving other customers, bringing those back to tell US and then what we do within Portela enables us to go and take that show on the road so to speak and serve other customers certainly principally in the telecom and media segment, but by no means exclusively given the obvious similar dynamics in the buying behaviors and chat.

Stephanie Price: And related, Doug, I think you mentioned that you expect growth to build over the year. And I assume that might be restructuring-related as well. Thank you. Sano, given the criticality of the relationship between our consumer business and TI, why don't you speak to that? And Jeff, you're on the call.

<unk> customers in the BSI health care and other segments that are challenged with as well I think consistent with that symbiotic dynamic whilst we're certainly adding.

To see Vanessa leave, bringing <unk> onboard as part of the robust coordinated succession planning again, an opportunity for both Ti and Telus to benefit from one and others.

Darren: If you've got a few things that you want to top up on post-Sano's answer, I think that would be great. And Doug, you and I can handle the restructuring. You know.

As to a global talent pool.

And we'll be having proven herself as a trusted leader in adviser and advocate within the Telus organization for the past 14 years.

Zainal: Thank you. Thanks, Stephanie. Great, great question.

<unk> an opportunity to further.

Strengthen the connection between the two organizations and as Dan just pointed out.

Zainal: I think you'll definitely see us, as I mentioned around the public review as well, continue to synergize and leverage TI effectively across our business. And, you know, we can see that there are ample opportunities from an end-to-end perspective. Customers are wanting more digitized solutions. And what we're doing with TI is also ensuring that we build exciting new product roadmap capabilities that we can own ourselves, we can license from an end to end perspective to, you know, other peers in the industry globally, and that reduce our costs and create an opportunity for us to really own our destiny in terms of our product roadmaps. So, you'll see more of that in the future.

The opportunities prospectively to continue to enable one another and similarly intervenes comments earlier on the health care front.

Thank you.

The environment, just becomes that much more target rich bi directionally.

Doug I want to comment on restructuring on the restructuring side.

We still have an elevated amount of restructuring within the real estate portfolio. So as Tony highlighted we have a significant opportunity on the rationalization of real estate not just in coordination with the copper decommissioning, but even within our own office footprint in <unk>.

Aligning the way, we do business and the way our team members work today versus.

Jeff: And it accelerates our opportunity to drive those gains because we're not dependent on a third party. We have a synergistic relationship with TI throughout development. And then on the overall cost per customer perspective, leveraging TI enables us to support the demands of our customers in a product-intensive environment. We're serving our customers across numerous products, and we're able to leverage TI to scale those capabilities and provide quality and excellence in our customer service profile. And so while we're going to continue to digitize our customer support and ensure that we build more streamlined customer journeys, as we've done with Public Mobile, we're also able to lean on our relationship with TI and the depth of experience at TI in terms of supporting our business for years and over the transitions we've made from things like copper to fiber and from new products that we've offered in the market. So I think you' Maybe, Jeff, you wanted to top it up.

The old historical footprint that we have so I'd say, a little more than a third of it.

It's going to be the elevated real estate, which will have an year again, there is a portion of it for M&A and integration and some of the items that we would normally see as well and then the remaining is the ongoing efficiency and effectiveness program and if you remember our ongoing run rate is generally $150 million to $200 million. So we are elevated maybe 100 million.

Next year, but it's a combination of all those items.

And trying to leverage all the assets that we have in front of us.

Great. Thank you very much.

Thanks, Stephanie.

We have time for one more question. Please.

Yes of course, our next question comes from Simon Flannery.

Please go ahead.

Great. Thank you very much good afternoon, everyone.

So just come to the 24 outlook, particularly around the wireless industry. Maybe you could just talk about the sustainability, we've seen across the whole industry. This quarter. This year really strong loading.

The government's looking at foreign student fees permits how do you think about the sustainability of the current growth rates for the industry and then you specifically called out the churn has been better than peers, but still not where you want it to be so perhaps just unpack. How you think you can bring that down or are you already seeing some normalization in Q1. Thank you.

Okay Zeno Levine.

I'll hand that over to you to comment on so we cover up both the consumer side, but also the <unk> side.

Jeff: Sure. Thanks, Zainal. Hey, Stephanie.

Particularly in respect of Iot as well.

Jeff: Nice to hear your voice again. A few things I would add. Kim Biotic.

Why don't you go first then you can complement.

Yeah, that's great. Thank you so much for the question so.

Jeff: Telus and TI is by no means new. That has been in place as part of our originating thesis at first instance, Telus International enabling Telus in its digital transformation and delighting customers through the combination of talent and technology. But at the same time, Telus International then, pays for creating that, learning from serving other customers, bringing those back to Telus. And then what we do within Telus enables us to go and take that show on the road, so to speak, and serve other customers, certainly principally in the telecom and media segment, but by no means exclusively, given the obvious similar dynamics in the buying behaviors, challenges that customers in the BFSI, healthcare, and other segments I think that is consistent with that symbiotic dynamic.

So I think we are focused on continued premium and high quality product intensity loading.

And we're also focused as I mentioned in.

Some of the discussion on public on penetrating areas that where we have been underpenetrated in the past and I think that there is tremendous growth opportunity for us in our organization in that regard that Ken.

We will obviously be impacted by the macroeconomic environment, but I think that there are growth prospects for us as we have been underpenetrated in some of those segments.

And we've been Underpenetrated from a product intensity perspective in some regions of Canada, which I think we can continue to pursue so when it comes to churn as Darren highlighted we have been of course ahead of the industry and ahead of our peers, but we're not satisfied and what it taught us.

Jeff: Whilst we're certainly gladdened to see Vanessa leave, bringing GOPI on board is a part of the robust, coordinated, accession planning, again an opportunity for both TI and Telus to benefit from one another's access to global talent, and Gopi having proven herself as a trusted leader, advisor, and advocate within the Telus organization for the past 14 years brings TI an opportunity to further strengthen the connection between the two organizations. And as Daniel just pointed out, the opportunities prospectively to continue to enable one another, and similarly Naveen's comments earlier on the healthcare front, I think the environment just becomes that much more target rich directly. Doug, want to comment on the restructuring? Yeah, on the restructuring side, we still have an elevated amount of restructuring within the real estate portfolio.

From a performance perspective is that we're gonna have to continue to advance our product intensity intensity and bundling place for all segments of the market and have more attractive bundles for all segments of the market and when you look at the assets that we have and our ability to accelerate the go to <unk>.

<unk> of those assets as we discussed with Ti.

We have tremendous upside opportunity clients are responding to our desire to see greater product intensity and create greater value from them and I think you can see that in areas like security and smart home automation, which we will continue to evolve you can see that in areas like health and other areas.

We're continuing to bundle and you can see it in our very unique and differentiated content strategies and as an example, we were the first in the world to launch the new version of stream, plus two to Idaho, which bundles, Netflix Disney plus and Amazon Prime for the first time ever and so these types of offers are going to.

Jeff: So, as Tony highlighted, we have a significant opportunity for the rationalization of real estate, not just in coordination with the copper decommissioning, but even within our own office footprint and aligning the way we do business and the way our team members work today versus the old historical footprint that we have. So I'd say a little more than a third of it is going to be the elevated real estate which we'd have in a year again.

To resonate with our beef and continue to drive product intensity and continue to differentiate us relative to our peers and I think that those are the kinds of areas that we'll continue to lean in queue to improve our churn results.

Doug: There's a portion of it for M&A and integration of some of the items that we would normally see as well. And then the remaining amount is for the ongoing efficiency and effectiveness program. And if you remember, our ongoing run rate is generally $150 to $200 million. So we are elevated by maybe $100 million next year. But it's a combination of all those things and trying to leverage all the assets that we have in front of us. Great, thank you very much.

Thanks, Dan I appreciate the commentary on on judicious loading in respect of quality and the potency on our retention front. The continued focus on efficiencies through to the <unk> level and how we win on the marketplace as it relates to bundling the vein do you want to comment.

Yes, thanks Darren.

Just building on <unk> comments, similar thought process on the <unk> side, So first and foremost.

We are very focused on high quality.

Good margin loading we're not going to.

Stephanie Price: Thanks, Stephanie. Miha, we have time for one more question, please. Yes, of course. The next question comes from Simon Flannery. Please go ahead.

Chase non profitable or low profitable loading.

I think theres a significant.

Market growth opportunity that we still have on the <unk> space there are.

Simon Flannery: Great. Thank you very much. Good afternoon. I wanted to just talk about the 24 Outlook and, particularly, the wireless industry. Maybe you could just talk about the sustainability we've seen across the whole industry this quarter, this year, really strong load. I know the government's looking at foreign student visas or permits.

Natural geographies, where we have a lot more.

<unk> market to go after and that's what we're focused on.

On the bundling point.

Again as I mentioned on my response and health, what a great differentiator.

For our BTB organizations, and we can leverage that in terms of.

Simon Flannery: How do you think about the sustainability of the current growth rates for the industry? And then you specifically called out the churn as being better than peers, but still not where you want it to be. So perhaps just unpack how you think you can bring that down.

The cross sell and strategic value or solution value, we can provide customers with the combination of <unk>.

Telecommunications and health capabilities.

So lots we can do there.

And lots of opportunity for growth in intensity and then on the <unk> or monetizing <unk> side, we continue to remain very bullish in terms of our ability to monetize <unk>.

Darren: Are you already seeing some normalization in Q1? Thank you. Okay, Zainal and Naveen, I'll hand that over to you to comment on, so we cover up both the consumer side and also the B2B side, particularly in respect of IoT as well. Zainal, why don't you go first, and Naveen, you can compliment.

As you heard and saw in our results really strong momentum with Iot and connected device growth.

We have a natural differentiator there with Canada's only dedicated Iot core network.

Zainal: Yeah, great. Thank you so much for the question. So I think we are focused on continued premium and high quality product intensity loading. And we're also focused, as I mentioned, on some of the public discussions on penetrating areas that we have been under penetrated in the past. And I think that there is tremendous growth opportunity for us and our organization in that regard. But that can, you know, will obviously be impacted by the macro economic environment.

Data monetization.

It's a bit of a marathon not a sprint, but it is becoming more and more of the growth story across both our vertical and horizontal services and applications.

Private wireless network, we had very very strong momentum in 2023, and an even stronger funnel in 2024.

And so we'll continue to look at Intel.

Intelligent ways to monetize.

Five we will look at smart.

Tuck in acquisitions, where it makes sense we recently.

Zainal: But I think that there are growth prospects for us, as we have been under penetrated in some of those segments. And we've been under penetrated from a product intensity perspective in some regions of Canada, which I think we can continue to pursue. So you know, when it comes to churn, as Darren highlighted, we have been, of course, ahead of the industry and ahead of our peers, but we're not satisfied. And what it's taught us from a performance perspective is that we're going to have to continue to advance our product intensity and bundling strategy for all segments of the market and have more attractive bundles for all segments of the market. And, you know, when you look at the assets that we have and our ability to accelerate the go-to-market of those assets, as we discussed with TI, we have tremendous upside opportunities. Clients are responding to our desire to see greater product intensity and create greater value from them. And I think you can see that in areas like security and smart home automation, which we will continue to evolve.

Bought by DAU, which really is a leader in supporting data migration to the cloud data management excellence and data analytics and a great opportunity for us to bring that capability across.

Health across tell us agriculture consumer goods and then our core <unk>.

<unk> capabilities, along with our vertical and horizontal.

Industry solutions capabilities on the Iot side.

So lots and lots of opportunities for us to differentiate drive product intensity and drive significant.

Revenue growth all underpinned by our focus on cost and leveraging our partners in Ti to help drive that.

Really strong digital generative AI and automation and self serve capabilities that Peter.

Thanks, a lot Simon one thing Thats exceedingly clear in terms of a differentiated tell a story on a global basis is that our growth is phenomenally well underpinned across both business and consumer because of our customer service excellence.

And what it delivers on our client loyalty and retention basis.

That's true whether it's digital whether it's our great people and our culture.

Zainal: You can see that in areas like health and other areas that we're continuing to bundle. And you can see it in our very unique and differentiated content strategies. As an example, we were the first in the world to launch the new version of StreamPlus 2.0, which bundles Netflix, Disney+, and Amazon Prime for the first time ever.

It's Ti supporting those service excellence outcomes and for US that's just good business.

And supporting the growth and at the end of the day, keeping the customers that we have set up the right platform, but it also gives us the right upselling opportunity as we drive product penetration with our bundling strategy. So that's the ecosystem.

Zainal: And so these types of offers are gonna continue to resonate with our base and continue to drive product intensity and continue to differentiate us relative to our peers. And I think that those are the kinds of areas that we'll continue to lean into to improve our churn results. Thanks, Dan. I appreciate the commentary on judicious loading in respect of quality and potency on our retention front, the continued focus on efficiency through to the AMPU level, and how we win in the marketplace as it relates to bundling. Naveen, do you want to comment?

Our philosophy and you can expect more of the same in 2024. Thanks for the excellent question.

Thank you.

You Simon and thank you everyone for joining US today, please feel free to reach out to the IR team with any follow ups you may have.

This concludes the total 2023 Q4 earnings conference call. Thank you for your participation and have a nice day.

Naveen: Yeah, thanks, Darren. Just building on Zainal's comments, you know, a similar thought process on the B2B side. So, first and foremost, you know, we are very focused on high quality. Good margin loading.

Naveen: We're not going to chase non-profitable or low-profitable load. I think there's a significant market growth opportunity that we still have in the B2B space. There are natural geographies where we have a lot more addressable market to go after, and that's what we're focused on. I think on the bundling point, again, as I mentioned in my response to health, what a great differentiator for our B2B organizations. We can leverage that in terms of cross-sell and strategic value or solution value. For example, we can provide customers with a combination of telecommunications and health capabilities. So there is lots we can do there and lots of opportunity for growth and intensity.

[music].

Naveen: And then on the 5G or monetizing 5G side, we continue to remain very bullish in terms of our ability to monetize 5G. We have, as you heard and saw in our results, strong momentum with IoT and connected device growth. We have a natural differentiator there with Canada's only dedicated IoT core network.

Naveen: Data monetization is a bit of a marathon, not a sprint, but it is becoming more and more of a growth story across both our vertical and horizontal services and applications, and private wireless network. We had very, very strong momentum in 2023 and an even stronger funnel in 2024. And so we'll continue to look at intelligent ways to monetize 5G.

Naveen: We will look at smart... tuck-in acquisitions where it makes sense. We recently bought Badal, which really is the leader in supporting data migration to the cloud, data management excellence, and data analytics, and a great opportunity for us to bring that capability across health, across Telus agriculture, consumer goods, and then our core B2B capabilities, along with our vertical and horizontal industry solutions capabilities on the IT side. So lots of opportunities for us to differentiate, drive product intensity, and drive significant revenue growth, all underpinned by our focus on cost and leveraging our partners in TI to help drive that really strong digital generative AI and automation and self-serve capabilities. Back to you, Darren. Thanks a lot.

Darren: Simon, one thing that's exceedingly clear in terms of a differentiated Telus story on a global basis is that our growth is phenomenally well underpinned across both business and consumer because of our customer service excellence and what it delivers in terms of client loyalty and retention. And that's true whether it's digital, whether it's our great people in our culture, or whether it's TI supporting those service excellence outcomes. And for us, that's just good business in supporting growth, and at the end of the day, keeping the customers that we have sets up the right platform, but it also gives us the right upselling opportunity as we drive product penetration with our bundling strategy. So that's the ecosystem and our philosophy, and you can expect more of the same in 2024. Thanks for the excellent question. Thank you.

Operator: Thank you, Simon, and thank you, everyone, for joining us today. Please feel free to reach out to the IR team with any follow-ups you may have. This concludes the Telus 2023 Q4 earnings conference call. Thank you for your participation, and have a nice day.

Robert Mitchell: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? ?? Good day and welcome to the Telus 2023 Q4 earnings conference call. I would like to introduce your speaker, Robert Mitchell. Please go ahead.

Darren: Hello, everyone. Thank you for joining us today. Our fourth quarter of 2023 results, news release, MD&A financial statements, and supplemental investor information were posted on our website this morning. On our call today, we'll begin with remarks from Darren and Doug. For the Q&A portion, we will be joined by other members of the executive leadership team. In brief, prepared remarks, slides, and answers to questions contain forward-looking statements. Actual results could vary materially from these statements; the assumptions on which they are based, and the material risks that could cause them to differ are outlined in our public filings and securities commissions in Canada and the U.S., including in our fourth quarter annual 2023 MD&A. With that, over to you, Darren. Thanks, Randy. And hello, everyone.

[music].

Darren: Throughout 2023, our team successfully navigated a highly competitive industry and overcame a challenging macroeconomic landscape and dynamic regulatory environment to achieve strong operational and financial results across our business. Indeed, our results for the year demonstrate execution strength in our T-Tech business segment, characterized by the potent combination of leading customer growth and strong operational and financial results, enhanced by our significant and ongoing focus on cost efficiency. These results were buttressed by improving resilient fourth-quarter profitability from our DLTX segment despite the continued challenging macroeconomic operating environment faced by Telus International. Robust performance in our core telecom business is underpinned by our globally leading broadband networks and superior customer-first culture. This enabled our strongest fourth quarter customer growth on record with industry-leading total net additions of $404,000.

Darren: This represented an increase of 34% year-over-year, driven by strong demand for our leading portfolio of bundled services across mobility and VIX. The fourth quarter capped off a record-setting year for industry-best customer net additions of close to $1.3 million, surpassing our previous record high achieved in 2022 by more than 21%. Notably, 2023 marked the second consecutive year our team delivered more than one million new customer additions.

Darren: This robot's performance included strong fixed subscriber growth of 259,000, our highest mobile phone net additions since 2010 with 443,000 net new customers, and all-time record connected device and additions of 564,000. Telus' industry-leading growth reflects the consistent potency of our operational execution and our unmatched bundled product offerings across mobile and home. Our team's passion for delivering customer service excellence contributed to strong loyalty across our key product lines, and we, of course, have continued to do this on a continued basis. Looking at our consolidated performance for the full year, operating revenue growth of 9.4% essentially met the lower end of our updated guidance range, reflecting the exogenous challenges we encountered, which we will discuss further on our call today. Despite these challenges, we drove EBITDA growth of 7.6% for the year, just above the midpoint of our public guidance expectations. Moreover, we achieved strong free cash flow of approximately $1.8 billion, representing industry-leading growth of 38% for the year. Let's now turn to take a look at the fourth quarter.

Darren: Telus once again achieved resilient operating revenues and strong EBITDA growth of 2.6% and 9.4%, respectively. Looking at our T-TEC mobile results, Telus realized robust customer growth of 329,000 net additions in the fourth quarter. This included healthy mobile phone net additions of 126,000, representing a year-over-year increase of 13%, and notably, surpassing the 10 million mobile phone customer milestone.

Good day and welcome to the <unk> 2023 Q4 earnings conference call I would like to introduce your Speaker Robert Mitchell. Please go ahead.

Well everyone. Thank you for joining us today, our fourth quarter 2023 results news release, MD&A financial statements and supplemental Investor information were posted on our website. This morning on our call today will begin with remarks by Darren and Doug for the Q&A portion will be joined by other members of our executive leadership team briefly from head remarks.

Darren: This strength was driven alongside our continued focus on profitable and margin-increased customer growth. Indeed, this consistent and disciplined approach will continue throughout 2024 and beyond to ensure our mobile customer growth drives EBITDA and cash flow accretion. It also included an all-time quarterly record for connected device net additions of 203,000, close to double compared to the prior year.

Lids and answers to questions contain forward looking statements actual results could vary materially from these statements and assumptions on which they are based in the material risks that could cause them to differ are outlined in our public filings with securities commissions in Canada, and the U S, including in our fourth quarter and annual 2023, MD&A with that over to you Dan.

Randy and Hello, everyone throughout 2023, our team successfully navigated a highly competitive industry and overcame a challenging macroeconomic landscape and dynamic regulatory environment to achieve strong operational and financial results across our business.

Darren: This reflects continued strong momentum with respect to our 5G and IoT B2B solutions that are so essential for our successful future. Importantly, our team delivered another quarter of industry-best loyalty results, which continues to be the hallmark of the Telus organization and is emblematic of our customers-first culture in action by our team. While Splendid Mobile Phone's churn of 1.4% was up against the backdrop of heightened competitive activity and not at a level where we are content, it represented an industry-best result by a rather substantial margin. Notably, post-pay mobile phone churn of 0.87% for the full year marks our 10th consecutive year at less than 1%.

Indeed, our results for the year demonstrate execution strength and our T Tech business segment characterized by the potent combination of leading customer growth and strong operational and financial results enhanced by our significant and ongoing focus on cost efficiency.

These results were buttressed by improving our resilient fourth quarter profitability from our <unk> segment. Despite the continued challenging macroeconomic operating environment faced by Telus International.

Robust performance in our core telecom business is underpinned by our globally, leading broadband networks and superior customer first culture.

This enabled our strongest fourth quarter customer growth on record with industry, leading total net additions of 404000.

Darren: Not many companies can make that claim on a global basis. One key factor behind this consistent industry-best performance is the superiority of our world-leading network. In this regard, in 2023, Telus once again earned numerous accolades for network reliability, network expansiveness, speed, and superiority.

This represented an increase of 34% year over year, driven by strong demand for our leading portfolio of bundled services across mobility and fixed.

The fourth quarter capped off a record setting year for industry best customer net additions of close to $1 3 million, surpassing our previous record high achieved in 2022 by more than 21%.

Darren: This included multi-year recognition from independent third-party organizations such as OpenSignal and PCMag. Telus has been recognized as Canada's most awarded network by OpenSignal for six consecutive years now. Moreover, PCMag named Telus Canada's Best Mobile Carrier and Best Mobile Carrier for Business in their annual Reader's Choice Awards. The close on mobile, fourth quarter ARPU of $58.50, was down slightly year over year as a result of intense promotional market activity and heightened activity, in particular, in the flanker space.

Notably 2023 marked the second consecutive year, our team delivered more than 1 million new customer additions.

This robust performance included strong fixed subscriber growth of 259000, our highest mobile phone net additions since 2010 with 443000 net new customers and all time record connected device net additions of 500.

Darren: This was mitigated, however, by our long-standing focus on AMPU accretive loading, driven by our team's passion for winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies. Furthermore, connected devices and IoT will increasingly be an important contributor to network revenue, ARPU, and AMPU growth in the quarters ahead. Indeed, our solid and resilient ARPU, which was up 1.2% in 2023, alongside our leading churn, continued to drive our industry-best mobile phone lifetime revenue. We consistently exceed our national peers in this regard by a considerable margin of up to more than 60% in 2023.

64000.

<unk> industry, leading growth reflect the consistent potency of our operational execution, and our unmatched bundled product offerings across mobile and home.

Our team's passion for delivering customer service excellence contributed to strong loyalty across our key product lines and we of course have done this on a continued basis.

Looking at our consolidated performance for the full year operating revenue growth of nine 4% essentially met the lower end of our updated guidance range, reflecting the exogenous challenges, we encountered which we will discuss further on our call today.

Darren: This leadership is reflective of the combination of our continued focus on high-quality customer growth and leading client loyalty. Now, let's take a look at our T-TECH fixed operating results, where Telus delivered another quarter of industry-fast wireline customer growth. Indeed, our team achieved strong fourth-quarter internet net additions of 36,000. We also continue to drive healthy growth in our TV product line with industry-leading net additions of 23,000, up 35% over the prior year, despite modestly higher churn. Modest residential voice losses of 7,000 again represented an industry-best result.

Despite these challenges we drove EBITDA growth of seven 6% for the year just above the midpoint of our public guidance expectation.

Moreover, we achieved strong free cash flow of approximately $1 $8 billion.

Representing industry, leading growth of 38% for the year.

Let's now turn to take a look at the fourth quarter.

Telus once again achieved resilient operating revenues and strong EBITDA growth of two 6% and nine 4% respectively.

Darren: Strong and leading security netitions of $23,000 further reflect the momentum with respect to our successful multi-product penetration strategy. Overall, our industry-leading external fixed net additions of $75,000 demonstrate the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services combined with our customer service excellence. These are buttressed by our ever-expanding broadband networks, our leading customer-centricity approach, as well as our strong and highly differentiated social capitalism attributes that truly underpin the strength of the Telus brand and culture in action in respect of our go-to-market activities. Notably, PCMag recognized Telus as the fastest internet service provider in Canada for the fourth consecutive year in 2023.

Looking at our <unk> mobile results Telus realized robust customer growth of 329000 net additions in the fourth quarter.

This included healthy mobile phone net additions of 126000, representing a year over year increase of 13% and notably surpassing the 10 million mobile phone customer milestone.

This strength was driven alongside our continued focus on profitable and margin accretive customer growth.

Indeed, this consistent and disciplined approach will continue throughout 2024 and beyond to ensure our mobile customer growth drive EBITDA and cash flow accretion.

It also included an all time quarterly record for connected device net additions of 203000 close to double compared to the prior year.

This reflects continued strong momentum with respect to our <unk> and Iot <unk> solutions that are so essential for a successful future.

Darren: The accolades that we have won for the superiority of our broadband networks across both mobile and fixed illustrate the Telus team's steadfast commitment to connecting Canadians to the people and to the information that matters most. Furthermore, the generational broadband network investment that TELUS has prudently made over the last decade will continue to drive extensive socioeconomic benefits for Canadians in communities from coast to coast, whilst underpinning the continued advancement of our operational and financial performance at the TELUS organization. Let's turn now and look at Telus Business Solutions, or TBS, which continues to contribute meaningfully to the success of the wider Telus organization. TBS once again delivered another strong quarter with continued revenue and EBITDA growth. Impressively, TBS achieved its highest Q4 year-over-year EBITDA growth in the past three years.

Importantly, our team delivered another quarter of industry best loyalty results, which continues to be the hallmark of the Telus organization and is emblematic of our customers first culture in action by our team.

While its blended mobile phone churn of one 4% was up against the backdrop of heightened competitive activity and not at a level, where we are content. It represented an industry best result by a rather substantial margin.

Notably postpaid mobile phone churn of zero dot, 87% for the full year marks our 10th consecutive year at less than 1% not many companies can make that claim on a global basis.

One key factor behind this consistent industry best performance is the superiority of our world leading networks.

In this regard in 2023 Telus once again earned numerous accolades for network reliability network Expansiveness speed and superiority.

Darren: During the quarter, TBS continued its strong momentum in SMB and secured several notable wins with commercial and public sector organizations across Canada, accelerating the growth of both our core services and monetizing 5G through private wireless networks, connected worker, fleet, and IoT connectivity management solutions. Telus Agriculture and Consumer Goods, or TAC, has recently delivered the best back-to-back sales quarters on record in over three years for consumer goods and also realized the best quarter on record for digital animal agriculture. As we move into 2024, we are looking to build upon this positive momentum and drive accelerated financial contributions on a consolidated basis. To support the next chapter of our winning growth strategy and reflective of our commitment to use our technology and data services to lead the world in social capitalism, we recently moved our Telus Health business into TBS.

This included multi year recognition from independent third party organizations, such as open signal and PC Mag.

Telus has been recognized as Canada's most awarded network by open signal over six consecutive years now Mauro.

Moreover, PC Mag named Telus, Canada's best mobile carrier and basketball bulk carrier for business in their annual Readers' Choice Awards.

The closed on mobile fourth quarter <unk> of $58 50 with.

It was down slightly year over year as a result of intense promotional market activity and heightened activity in particular in the flanker space.

This was mitigated however by our long standing focus on Abu accretive loading driven by our team's passion for winning and retaining profitable customers whilst remaining highly disciplined in respect of device subsidies.

Furthermore, connected devices and Iot will increasingly be an important contributor to network revenue ARPA and <unk> growth in the quarters ahead.

Indeed, our solid and resilient <unk>, which was up one 2% in 2023.

Darren: Similar to our earlier integration of TAC into TBS, this better positions our health business to leverage the expertise, the experience, and the high-performance culture and talent of our broader B2B team. Looking now at our Telus Health business, we achieved fourth-quarter revenues of $432 million, alongside 24% year over year EBITDA growth and delivered total annual revenues of $1.7 billion in 2023. We continue to execute on our global growth strategy and demonstrate our progress towards our goal to be the most trusted well-being company in the world, and this includes our health care services and programs now covering 70 million lives around the world, an increase of almost 2 million on a year-over-year basis. This also includes supporting health outcomes on 610 million digital health transactions during 2023, up 5% over last year. And this includes increasing our virtual care membership to 5.6 million, up more than 24% over the prior year.

Alongside our leading churn continued to drive our industry best mobile phone lifetime revenue.

We consistently exceed our national peers in this regard by a considerable margin of up to more than 60% in 2023.

This leadership is reflective of the combination of our continued focus on high quality customer growth and leading client loyalty.

Now, let's take a look at our T chek fixed operating results, where Telus delivered another quarter of industry best wireline customer growth indeed.

Indeed, our team achieved strong fourth quarter Internet net additions of 36000, we also continue to drive healthy growth in our TV product line with industry, leading net additions of 23000 up 35% over the prior year, despite modestly higher churn.

Modest residential voice losses of 7000 again represented an industry best result straw.

Strong and leading security net additions of 23000 further reflect the momentum with respect to our successful multi product penetration strategy.

Darren: Since acquiring Lightworks in 2022, our team is committed to driving $427 million in annualized synergies by the end of 2025. This includes $327 million expected to be realized through operating cost synergies from continued integration and optimizing our organizational structure, our systems, and our real estate portfolio. In addition, we continue to anticipate $100 million or more from longer-term revenue synergies driven by cross-selling health services products within our TELUS Health customer base and throughout our TELUS portfolio of assets, including TELUS Business Solutions, TELUS Partner Solutions, TELUS Agriculture and Consumer Goods, and, obviously, TELUS International. Today, we've achieved $233 million in combined annualized synergies towards our overall objective of $4 These synergies will allow us to reinvest in the growth of our business and improve our profitability while we focus on delivering efficient, secure, and best-in-class health and wellness solutions to our customers across the globe. Now, let's take a look at Telus International.

Overall, our industry, leading external fixed net additions of 75000 demonstrate the strength of our unique and highly attractive bundled offers across our unmatched portfolio of products and services combined with our customer service excellence.

These are buttressed by our ever expanding broadband networks are leading customer centricity approach as well as our strong and highly differentiated social capitalism attributes that truly underpinned the strength of the Telus brand and culture inaction in respect of our go to <unk>.

Market activity.

Notably PC Mag recognize tell us as the fastest Internet service provider in Canada for the fourth consecutive year in 2023.

The accolades that we have won for the superiority of our broadband networks across both mobile and fixed illustrate the telus team's dead fast commitment to connecting Canadian to the people enter the information that matter most.

Furthermore, the generation of broadband network investments that tell us. This prudently made over the last decade will continue to drive extensive socio economic benefit for Canadians and communities from coast to coast was underpinning the continued advancement of our operational.

Darren: Earlier today, TI reported its fourth quarter and full year 2023 results with solid revenue growth, notwithstanding a continued challenging operating environment. Importantly, TI delivered on its commitment to improve profitability in the second half of the year, exiting the year with a strong margin profile more aligned with its historical trend. Our synergistic relationship offered incrementally more opportunities to partner with TI, alongside continued momentum fueled by the AI solutions that TI provides to companies like Google, its second largest client, offsetting an otherwise softer demand environment. The improvement in TI's profitability also reflected meaningful cost efficiency efforts implemented during the year, realigning its cost base to better meet the near-term demand environment. Over the longer term, TI remains a compelling growth story with meaningful opportunities driven by digital transformation underpinned by robust and highly differentiated AI capabilities. Jagger is going to provide further commentary on both TTAC and Telus International's results in just a moment.

And financial performance at the Telus organization.

Let's turn now and look at <unk> business solutions, or TBS, which continues to contribute meaningfully to the success of the wider <unk> organization.

TBS once again delivered another strong quarter with continued revenue and EBITDA grow impressively TBS achieved its highest Q4 year over year EBITDA growth over the past three years.

During the quarter TBS continued its strong momentum in SMB and secured several notable wins with commercial and public sector organizations across Canada accelerating the growth of both our core services and monetizing by G III private wireless network.

Connected worker fleet, and Iot connectivity management solutions.

<unk> agriculture, and consumer goods or Tac has recently delivered the best back to back sales quarters on record and over three years in consumer goods and also realize the best quarter on record for digital animal agriculture.

As we move into 2024, we're looking to build upon this positive momentum and drive accelerated financial contributions on a consolidated basis.

Darren: Our team's ability to consistently drive profitable growth over the longer term on the back of our differentiated asset base, best-in-class customer experience, and world-leading networks alongside our unique growth businesses provides us with confidence in the robust outlook for our business and delivering on the annual targets that we've announced for 2024. These include T-TEC operating revenues and adjusted EBITDA increases of 2-4% and 5.5-7.5%, respectively. It includes consolidated CapEx of approximately $2.6 billion, and it includes consolidated free cash flow of approximately $2.3 billion, up circa 30% over 2023, supported by strong EBITDA growth and stable capital investment. On a consolidated basis, our 2024 performance will be supported by the annual targets TI announced this morning. This includes revenue and EBITDA growth of 3 to 5 percent and 7 to 10 percent, respectively, supporting robust profitability and leading free cash flow yield in line with TI's historical average.

To support the next chapter of our winning growth strategy and reflective of our commitment to use our technology and data services to lead the world in social capitalism. We recently moved our Telus health business into TBS.

Similar to our earlier integration of attack into TBS. This better positions, our health business to leverage the expertise the experience and high performance culture and talent of our broader <unk>.

Looking now at our Telus health business.

We achieved fourth quarter revenues of $432 million.

Alongside 24% year over year, EBITDA growth and delivered total annual revenues of $1 7 billion.

In 2023.

We continue to execute on our global growth strategy and demonstrate our progress towards our goal to be the most trusted wellbeing company in the world.

And this includes our health care services and programs now covering 70 million lives around the world an increase of almost $2 million on a year over year basis. This includes supporting health outcomes on 610 million digital health transaction during <unk>.

Darren: Combining our outlook for TTAC and TI, we expect consolidated operating revenues and adjusted EBITDA growth rates similar to those that were outlined for the TTAC segment. Furthermore, the unparalleled skill, innovation, and, of course, the execution excellence of our team on our consistent and winning strategy underpins our industry-leading multi-year dividend growth program, now in its 14th year through to the end of 2025. And we look forward to communicating our multi-year dividend growth program at our AGM in May. Furthermore, to further buttress the sustainability of our consistently strong performance against the backdrop of the rapid transformation in our industry due to the evolving regulatory, competitive, and macroeconomic environment, we continue to focus on executing extensive efficiency and effectiveness initiatives across the Telus organization.

2023 up 5% over last year and this includes increasing our virtual care membership to $5 6 million up more than 24% over the prior year.

Since acquiring <unk> in 2022, our team is committed to driving $427 million in annualized synergies by the end of 2025.

This includes $327 million is expected to be realized through operating cost synergies from continued integration and optimizing our organizational structure, our systems and our real estate portfolio.

In addition, we continue to anticipate a $100 million or more from longer term revenue synergies driven by cross selling health services products within our <unk> customer base and throughout our <unk> portfolio of assets, including <unk> business <unk>.

Darren: Importantly, the transformational investments we have prudently made over the course of more than a decade in building the best culture and supporting industry-leading customer experiences over our globally leading wireless and pure fiber broadband networks are enabling the progression of our accelerated plan to digitally revolutionize our business and further streamline our operating costs because this organization leads on digital, and this organization has a unique asset in TI, our team's grit. Resilience and ability to embrace change and continuously evolve the way that we operate have enabled us to achieve our targeted team member reductions in 2023, with the full run rate of annualized cost savings expected to be realized in the second quarter of 2024. Furthermore, our intensified focus on cost efficiency is continuing into 2024, targeting restructuring investments of approximately $300 million over the course of the year. Well, these come with many difficult decisions.

<unk> <unk> partner solutions, <unk>, agriculture, and consumer goods, and obviously Telus international to.

To date, we've achieved $233 million in combined annualized synergies towards our overall objective of 427 million <unk>.

These synergies will allow us to reinvest in the growth of our business and improve our profitability, whilst we focus on delivering efficient secure and best in class health and wellness solutions to our customers across the globe.

Now, let's take a look at Telus International.

Earlier today <unk> reported its fourth quarter and full year 2023 results with solid revenue growth notwithstanding a continued challenging operating environment.

<unk> delivered on its commitment to improve profitability in the second half of the year exiting the year with a strong margin profile more aligned with its historical trend.

Darren: We continue to leverage our decades-long track record of successfully navigating exogenous factors in order to rise to the current challenges and future-proof our business and deliver industry-leading operational, financial, and value creation results. Against the backdrop of these ongoing challenges, our Telus family continues to bring our caring culture to life. Last year, our team members and retirees logged an unprecedented 1.5 million hours of volunteerism in communities across the globe.

Our synergistic relationship offered incrementally more opportunities to partner with Ti.

Alongside continued momentum fueled by the AI solutions that Ti provides the companies like Google <unk> second largest client offsetting and otherwise softer demand environment.

The improvement in Gis profitability also reflected meaningful cost efficiency efforts implemented during the year realigning its cost base to better meet the near term demand environment.

Darren: This is an unparalleled accomplishment that is more than any other company in the world. Due in part to our team's unsurpassed dedication to putting both our communities and customers first, the Telus brand has increased in value from $10.3 billion in 2023 to circa $11.5 billion today, as ranked in the Brand Finance 2024 Global Report. Notably, Telus moved up two places to become the most valuable telco brand in Canada and the eighth most valuable brand nationally. And to think this brand was worth $600 million back in 2000. Myself and our entire leadership team, as well as the Telus Board of Directors, remain exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of our stakeholders. And on that note, I'll turn the call over to Uncle Doug.

Over the longer term <unk> remains a compelling growth story with meaningful opportunities driven by digital transformation underpinned by robust and highly differentiated AI capabilities.

Doug is going to provide further commentary on both T Chek and Telus International's results in just a moment.

Our team's ability to consistently drive profitable growth over the longer term on the back of our differentiated asset base best in class customer experience and world leading networks alongside our unique growth businesses provides us with confidence in the robust outlook for our <unk>.

And delivering on the annual targets that we've announced for 2024. These include <unk> operating revenues and adjusted EBITDA increases of 2% to 4% and five dot five to seven 5% respectively.

That includes consolidated Capex of approximately $2 6 billion.

Doug: Thank you, Darren, and hello everybody. In the fourth quarter, our team achieved strong operational and financial results, supported by our long-standing commitment to drive profitable customer growth, our product diversity, execution excellence, our leading customer service, and our ongoing focus on efficiency and effectiveness. In mobility, continued mobile phone and connected device subscriber additions drove network revenue higher by 3.8 percent, along with moderating roaming revenue growth. We expect a highly competitive environment will continue to pressurize our pricing, along with the lapping of the roaming recovery that we experienced in the first half of 2023. Importantly, we continue to focus on AMPU to drive the right economic outcome. Our ongoing focus on efficiency and effectiveness will help drive sustainable EVA-DA growth and margin increase.

And it includes consolidated free cash flow of approximately $2 $3 billion.

Up circa 30% over 2023 supported by strong EBITDA growth and stable capital investments.

On a consolidated basis, our 2024 performance will be supported by the annual targets.

This morning. This includes revenue and EBITDA growth of 3% to 5% and 7% to 10%, respectively supporting robust profitability and leading free cash flow yield in line with <unk> historical average.

Combining our outlook for T Chek and Ti, we expect consolidated operating revenues and adjusted EBITDA growth rates similar to those that were outlined for the <unk> segment.

Furthermore, the unparalleled scale innovation and of course, the execution excellence of our team on a consistent and winning strategy underpinned our industry, leading multi year dividend growth program now in its 14th year through to the end of 2025 and we.

Doug: Our strong AMPU performance is further evidenced by our Mobility Direct Margin contribution increasing by nearly 5% in the quarter. Fixed data services grew 3.6% year-over-year, driven by strong customer growth across internet, security, and TV, and higher but moderating revenue per customer. Health services revenue increased by 5.1% over the prior period, primarily driven by demand for our products and services and continued adoption of our virtual care solution.

We look forward to communicating our multiyear dividend growth program at our AGM in May.

To further buttress the sustainability of our consistently strong performance against the backdrop of the rapid transformation in our industry due to the evolving regulatory competitive and macroeconomic environment. We continue to focus on executing extensive efficiency and effectiveness initiatives.

Across the Telus organization.

Doug: At the segment level, T-TEC operating revenues are up 2.6%, while T-TEC adjusted EBITDA increased 8%, and the adjusted EBITDA margin expanded 190 basis points supported through our efficiency program flow-through. In DLCX, operating revenues from existing customers were higher by 6.8% year-over-year, primarily due to growth in our tech and games, e-commerce, fintech, and other clients arising from additional services provided to existing customers and new customers added since the prior year, including those from the acquisition of WillowTree. A strengthening of both the European Euro and the U.S. dollar against the Canadian dollar also benefited during this period.

<unk> the transformational investments we have prudently made over the course of more than a decade and building the best culture, and supporting industry, leading customer experiences over our globally, leading wireless and pure fiber broadband networks are enabling the progression of our <unk>.

Zelle accelerated plan the digitally revolutionize our business and further streamline our operating cost because this organization leads on digital and this organization has a unique asset and Ti.

Our team's grit resilience and ability to embrace change and continuously evolve the way that we operate have enabled us to achieve our targeted team member reductions in 2023 with the full run rate of annualized cost savings expected to be realized in the second quarter.

Doug: During the fourth quarter, our Telus international team continued to execute against its significant efficiency plans and meaningful right sizing to its cost structure. Notably, DLCX adjusted EBITDA was up 19% or closer to 6% when excluding the one-time earn-out adjustment, while margins improved 120 basis points year-over-year. Heading into 2024, GI's focus on efficiency and organic growth will continue as we address some of the continued macroeconomic pressure. Overall, Consolidated Operating Revenues increased by 2.6% year-over-year, and Adjusted EVTA grew by 9.4%. Consolidated Net Income was up 17% year-over-year, while Basic EPS was up 18%. On an adjusted basis, net income was slightly up by just under 1%, while EPS was relatively flat. Free cash flow of $590 million in the fourth quarter increased by $267 million, driven by increased EBITDA growth, lower capital expenditures, and taxes paid, partially offset by an increase in interest payments and higher restructuring disbursements.

<unk> of 2024.

Furthermore, our intensified focus on cost efficiency is continuing into 2020 for targeting restructuring investment of approximately $300 million over the course of the year.

Whilst these come with many difficult decisions, we continue to leverage our decade long track record of successfully navigating exhort unit factors in order to rise to the current challenges and future proof, our business and deliver industry, leading operational <unk>.

Nacho and value creation results.

Against the backdrop of these ongoing challenges our <unk> family continues to bring our caring culture to life.

Last year, our team members and retirees logged an unprecedented $1 5 million hours of volunteerism and communities across the globe. This is an unparalleled accomplishment that is more than any other company in the world.

Due in part to our team's unsurpassed dedication deporting, both our communities and customers first the Telus brand has increased in value from $10 3 billion in.

In 2023, this circa 11 $5 billion today as rank in the brand Finance 2024 Global report.

Notably tell us moved up two places to become the most valuable telco brand in Canada, and the <unk> most valuable brand nationally.

Doug: For the full year, pre-cash flow of approximately $1.8 billion came in higher than our updated target of $1.5 billion. The result was higher primarily for two items. The increase in the restructuring reserve that we had deferred until 2024 of payments, which will flow into the first quarter and partially the second quarter. In addition, the second was the handset financing of approximately $75 million, where promotions in the period were more focused on device plans instead of, sorry, rate plans instead of device plans. Looking forward to our financial targets for 2024 and leading off the period, as Darren highlighted, our T-TEC revenue growth will go by 2 to 4% and T-TEC adjusted growth of EBITDA of 5.5 to 7.5%. Our financial outlook reflects continued healthy growth in our core T-Tech business as we maintain our consistent focus on profitable growth driven by continued demand for superior bundled offerings over our leading network.

And to think that brand was worth $600 million back in 2000.

Itself and our entire leadership team as well as the Telus Board of directors remain exceedingly grateful for our team's passionate efforts to support our global communities as we strive to deliver outstanding results for all of our stakeholders and on that note I'll turn the call over to uncle Doug. Thank.

Thank you Darren and Hello, everyone in the fourth quarter, our team achieved strong operational and financial results supported by our longstanding commitment to drive profitable customer growth our product diversity execution excellence, our leading customer service and our ongoing focus on efficiency.

Thank goodness and mobility continue continued mobile phone and connected device subscriber additions drove network revenue higher by three 8% along with a moderating roaming revenue growth. We expect a highly competitive environment will continue to pressurize, our who along with the lapping of the <unk>.

Chromium recovery that we experienced in the first half of 2023.

Importantly, we continue to focus on <unk> to drive the right economic outcomes, our ongoing focus on efficiency and effectiveness will help drive sustainable EBITDA growth and margin accretion.

Our strong and food performance is further evidenced by our mobility direct margin contribution increasing by nearly 5% in the quarter.

Doug: Our strategic focus to drive increased efficiency and effectiveness will also contribute to our financial outlook. Furthermore, in 2024, we anticipate improving financial contributions from Telus International, as well as Telus Health and our Telus Agriculture and Consumer Goods business. Consolidated capital expenditures are targeted to remain stable at $2.6 billion, representing a consolidated capital intensity ratio of 13%, which is a historic low for Telus.

Fixed data services grew three 6% year over year, driven by strong customer growth across Internet security television and higher but moderating revenue per customer.

Health services revenue increased by five 1% over the prior period, primarily driven by demand for our products and services and continued adoption of our virtual care solutions.

At the segment level <unk> operating revenues were up two 6%, while <unk> adjusted EBITDA increased 8% and adjusted EBITDA margin expanded 190 basis points supported through our efficiency program flow through.

Doug: In addition, we have embarked on 100 million, earmarked, sorry, 100 million for capital for real estate development initiatives, similar to 2023, as we progress our cooperative decommissioning program and work towards delivering our strategy and co-developing certain surplus real estate assets within our footprint. Lastly, consolidated free cash flow for 2024 is forecasted to be $2.3 billion, driven by higher EBITDA and stable capex. The strong growth includes higher cash restructuring payments related to our efforts undertaken in 2023, as discussed earlier, as well as incremental restructuring targeted in 2024. Putting it all together, and combined with TI's outlook announced earlier today, on a consolidated basis, we expect operating revenues and adjusted EBIT GA to grow similar to that of TITEC. As we progress through 2024, we anticipate our adjusted EBITDA growth to build as the year progresses. A detailed list of our assumptions for 2024 is set out in our annual MD&A release today.

<unk> operating revenues from our existing customers were higher by six 8% year over year, primarily from growth in our tech and games E Commerce, Fintech and other clients arising from additional services provided to existing customers and new customers added since the prior year, including those from the.

<unk> of Willow tree.

The strengthening of both the European Euro and U S dollar against the Canadian dollar also benefited in the period.

During the fourth quarter, our Telus International team continued to execute against its significant efficiency plans and meaningful of right sizing to its cost structure, notably <unk> adjusted EBITDA was up 19% or closer to 6% when excluding the one time.

Earn out adjustment, while margins improved 120 basis points year over year heading into 2020 for Gis focus on efficiency.

And at <unk>.

Organic growth will continue as we address some of the continued macroeconomic pressures.

Overall consolidated operating revenues increased by two 6% year over year and adjusted EBITDA grew by $9, 4% consolidated net income was up 17% year over year, while basic EPS was up 18%.

Doug: Overall, we remain bullish on our ability to continue generating strong free cash flow for the years to come, benefiting from our industry-leading growth profile that consistently showcases our superior asset mix, our leading customer service, and our operational execution. The strong position further supports our industry-leading dividend growth program in place through 2025 and beyond, along with the delevering of our balance sheet while continuing to make key strategic investments and further advancing our winning growth strategy. With that, Robert, back to you. Thanks, Doug.

On an adjusted basis net income was slightly up by just under 1%, while EPS was relatively flat.

Free cash flow of $590 million in the fourth quarter increased by $267 million driven by increased EBITDA growth lower capital expenditures and taxes paid partially offset by an increase in interest payments and higher restructuring disbursements.

For the full year free cash flow of approximately $1 8 million billion came in higher than our updated target of $1 five.

The result was higher primarily for two items the increase in restructuring.

<unk> that we had deferred until 2024 of payments, which will flow into the first quarter and partially in the second quarter. In addition, the second was the handset financing of approximately $75 million where promotions in the period were more focused on device plans instead of sorry right.

Robert Mitchell: Mihaly, let's please proceed with questions. Of course. The first question comes from Vince Valentini from TD Securities. Please go ahead. Thanks very much. The first thing I want to ask is about the DRIP.

Plans instead of device plans.

Looking forward to our financial targets for 2024 and leading up.

The period as Darren highlighted our key Tac revenue growth that will go by Q2, two 4% and key tack adjusted growth of EBITDA and $5 five to seven 5%.

Vince Valentini: Your free cash flow growth has been very strong and now seems to fully cover the dividend. Are we getting close to removing the DRIP discount, Doug? Yes, we are assessing that as we speak. We're going to look to the completion of the next spectrum auction, but we are definitely considering that as a future near-midterm opportunity. Great. And related to Free Cash Flow, one follow up. As you may have noticed, there are some working capital gyrations and some places in the industry, your pre-casual definition is very clean, but you do not include working capital. Any color you can give on 2024, is there any notable increase in working capital usage that we should be aware of? No, there isn't.

Our financial outlook reflects continued healthy growth, while our tour our core <unk> business as we maintain our consistent focus on profitable growth driven by continued demand for superior bundled offerings over our leading networks.

Our strategic focus to drive increased efficiency and effectiveness will also contribute to our financial outlook.

Furthermore, in 2024, we anticipate improving financial contributions from Telus International as well as Telus health and are are tell us agriculture and consumer goods.

Elevated capital expenditures are targeted to remain stable at $2 6 billion, representing a consolidated capital intensity ratio of 13%, which is a historic low for Telus and.

In addition, we are we have embarked $100 million earmarked 100 million for capital for real estate development initiatives similar to 2023, as we progress our copper decommissioning program and work towards delivering our strategy strategy and co developing certain surplus real estate assets within our footprint.

Doug: We actually had, you'll see in our statements, a significant decline in accounts payable at the end of 2023 based on our capital acceleration from the year before. We do not see any blips in 2024. Great, thank you. Your next question, please. Yes, the next question comes from Maher Yaghi from Scotiabank. Please go ahead.

Lastly, consolidated free cash flow for 2024 is forecasted to be $2 3 billion, driven by higher EBITDA and stable capex.

The strong growth includes higher cash restructuring payments related to our efforts undertaken in 2023 as discussed earlier as well as incremental restructuring targeted in 2020 for putting it all together, our combined with and combined with Gis outlook announced earlier today the consolidate on a consolidated.

Maher Yaghi: Great, thank you for taking my question. We saw public mobile quite active in the marketplace in Q4, and I suspect that this helped your load in the quarter. We also saw one of your competitors had a significant amount of prepaid flow state.

Basis, we expect operating revenues and adjusted EBITDA to grow similar to that of T. Chek.

Maher Yaghi: So while this is probably dilutive to ARPU, Darren, could you talk a little bit about the comparative metrics on AMPU for public mobile versus your existing wireless phase, just to be able to understand the impact and the changes of the mix for future profitability. And the second question I have is about health services. We're probably seeing an improving momentum here in the business. What would you like to see for this segment in terms of achievement in 2024 and for revenue growth, and any kind of information on EBITDA margin? or what you'd like to see in EBITDA margins in 24, that would be helpful. Thank you.

As we progress through 2024, we anticipate our adjusted EBITDA growth to build as the year progresses.

A detailed list of our assumptions for 2024 are set out in our annual MD&A released today overall, we remain bullish on our ability to continue generating strong free cash flow for the years to come and benefiting from our industry, leading growth profile that consistently showcases our superior asset mix.

Our leading customer service and our operational execution excellence.

The strong position further supports our industry, leading dividend growth program in place through 2025 and beyond along with the Delevering of our balance sheet, while continuing to take to make key strategic investments and continuing advancing our winning growth strategy with that Robert back to you.

Darren: Okay, thanks, Maher, for both questions. I think I'll, I'll let Zainal answer the first question. It's a pretty good news story, particularly as it relates to the quality of our loading, the integrity between post and pre, the digital construct of public, and what that portends at an AMPU level. So I'll hand over to Zainal for that, and Naveen, I'll let you handle what our expectations are for health in 2024. Sure, they'll be both laudable and very ambitious and exciting, so Zainal and Naveen, over to you both.

Thanks, Doug.

Let's please proceed with questions.

Of course first question comes from James.

Valentini from TD Securities. Please go ahead.

Thanks very much.

The first thing I want to ask is about the drip your free cash flow grow.

There has been very strong and now seems to fully cover the dividend or we're getting close to removing the drip discount Doug.

Yes, we are assessing that as we speak we're going to look to the completion of the next spectrum auction, but.

We are definitely considering that as a future near mid term opportunity.

Great and related to free cash flow of one follow up.

As you May have noticed there is some working capital gyrations in.

Some places in the industry.

Our free cash flow definition is very clean, but you do not include working capital any color you can give there on 2024 is there any notable increase in working capital usage that we should be aware no there isn't we actually add.

Zainal: Thank you, Darren. And Maher, thanks for the question. I think public, one of the things to really highlight is that, you know, we think about it internally as our IPO, our initial public offering, because it is a new offering. It's our first, it's the first digital only subscription offering, and it has resonated in the market. It's resonated in a demographic and a space that I think that we've been under-penetrated in in the past, and I think you What you can actually glean from that, though, is that when you load a public mobile customer, because it is absolutely digital only, we get a six times improvement on Ampu relative to a traditional subscriber.

Youll see in our statements a significant decline in accounts payable.

At the end of 2023 based on our capital acceleration from the year before we do not see any any blips in 2024.

Great. Thank you.

Next question please.

Yes next question comes from Maher Yaghi from Scotiabank. Please go ahead.

Great. Thank you for taking my question.

We saw public mobile quite active in the marketplace in Q4 and I suspect.

This helped you are loading in the quarter.

We also saw one of your competitors had a significant amount of prepaid to postpaid.

Switching.

So.

Well.

Probably W. <unk> Darren could you talk a little bit about the comparative metrics improve.

For public mobile versus their existing wireless space.

Just to be able to understand the impact and the changes.

Zainal: And so that is incredibly accretive to our Ampu story. And I would say that the additional element of that is that we have been very focused on leveraging the assets that we have that are differentiated relative to our peers in the market. And one of those is Telus International.

The mix for future profitability and the second question I have is on health services.

We're seeing probably.

And improving momentum here in the business.

What would you like to see for the segment in terms of achievements in 2024.

Zainal: And by leveraging the digital capabilities of Telus International, we're able to offer these kinds of offers that are unique to the market and that can get a lot of traction going forward. So, you know, we think that this is a great growth area for our business. It's responding in terms of the digital-only subscription model. It's a very seamless experience for customers, so the journey, we get a lot of great feedback on the journey, and we think there's good upside potential, and it will continue to support our Ampu growth and me. It is over to you.

Core revenue growth.

And any kind of.

Information on EBITDA margins or what you'd like see in EBITDA margins in 2004 that would be helpful. Thank you.

Okay. Thanks Barbara.

Good questions.

I think al.

I'll, let <unk> answer the first question.

A pretty good news story, particularly as it relates to the quality of our loading the integrity between post and three the digital construct of public and what that portends at an <unk> level, So I'll hand over to Daniel for that end Nebiim.

I'll, let you handle what our expectations are for health in 2024, I'm sure there'll be both laudable and very ambitious and exciting so Daniel intervene over the both of you.

Naveen: And indeed, our health ambitions are laudable and exciting. So we're very excited to bring the teams together across our B2B portfolio. I think it's really going to give us an opportunity to amplify our cross-sell ambitions and really drive some highly differentiated growth opportunities. I think it's important to remember that for the health team today, we operate in 160 countries, and so a big part of our increased growth momentum that we're planning in 2024 is really around leveraging our presence in those 160 countries today and driving improved product penetration, as well as improved customer expansion, in those geographies. Our health and well-being solutions are really unmatched in the market today, and we continue to develop improved capabilities.

Thank you Darren and thanks for the question.

I think public one of the things.

Really highlight is that.

We think about it internally as our IPO, our initial public offering because it is a new offering it's our first it's the first digital only subscription offering and it has resonated in the market and it's resonated and a demographic Kenneth space that I think that we've been underpenetrated in.

And I think you can see that in our and our prepaid results.

What you can actually glean from that though is that when you load a public mobile customer because it is absolutely digital only we get a six times improvement on <unk> relative to a traditional subscriber and so that.

Naveen: And again, that'll be a significant focus in 2024 around accelerating the development of those products and services. And in addition to that, in 2024, we're going to be looking to leverage the significant investments we made in sales and distribution channel strengths to drive top-line revenue. We're going to be focused aggressively on improving our margins by bringing in much more automation and AI capabilities by leveraging our Telus International team. And we'll do some tuck-in acquisitions where it makes sense. We're very focused on the development of our industry-leading mental health products and services, and we have the opportunity to intelligently and on an anonymized basis monetize vast amounts of data.

It is incredibly accretive in our <unk> story.

And I would say that the additional element of that is that we have been very focused on leveraging the assets that we have that are differentiated relative to our peers in the market and one of those is Telus international.

By leveraging the digital capabilities of Telus International we're able to advance these kinds of offers.

That are unique to the market and that can get a lot of traction going forward. So we think that this is a great growth area for our business. It's resonating in terms of the digital only subscription model is a very seamless experience for customers through that journey.

Naveen: So we'll be looking at what we can do in that regard and provide additional value through analytics and insights. In terms of the LifeWorks integration, as Darren mentioned, we're about $233M of synergies on a plan of $427M, and so 2024 is a lot about continuing to drive those synergies, continuing to drive EBITDA margin expansion. And as we continue to scale this asset, there's a significant opportunity for us to show the significant value this business adds and how it contributes to Telus' asset mix and positively differentiates in terms of the valuation it contributes to Telus. So, in terms of specific goals, we're definitely looking for double-digit EBITDA contribution and significant expansion on our cash contribution from this. Thank you, Derrick. Wow, that sounds really exciting, Naveen.

We get a lot of great feedback on the journey and we think theres good upside potential and it will continue to support our <unk> growth.

Okay.

Yes.

Yeah.

Sure.

And indeed.

Health ambitions are laudable and exciting so.

We're very excited to bring the teams together across our BTB.

Portfolio I think it's really going to give us an opportunity to amplify.

Our cross sell.

Yeah.

Ambitions and really drive some highly differentiated growth opportunities I think it's important to remember that.

For the health team today, we operate in 160 countries and so a big part of our.

Increased growth momentum that we're planning in 2024 is really around <unk>.

Leveraging our presence in those 160 countries today, and driving improved product penetration as well as improved customer expansion.

Darren: Sure, like your trajectory on 11% EBITDA growth in Q2, 20% EBITDA growth in Q3, and 24% EBITDA growth in Q4. So it would be disappointing not to hit circa 20% in 2024, given your leadership, the cross-selling opportunities, the cost synergy opportunities, and the TI support. Robert, why don't you go to the next question?

In those geographies, our health and well being solutions are really unmatched in the market today, and we continue to develop improved capabilities and again that will be <unk>.

Significant focus in 2024 around accelerating the development of those products and services.

And in addition to that in 2024, we're going to be.

Looking to leverage the significant investments, we did in sales and distribution channels.

Channel strengths to drive <unk>.

Operator: Thanks, Maher. Thank you, Paul. May I have the next question, please?

Top line revenue, we're going to be focused aggressively on improving our margins by bringing in <unk>.

Operator: Yes, of course. Just before we get to the next question, I would like to remind everyone to queue up for a question. Please press 01 now.

Much more automation and AI capabilities by leveraging our Telus International team will.

We will do some tuck in acquisitions, where it makes sense.

Jerome Dubreuil: And the next question comes from Jérôme Dubreuil from Desjardins; please go ahead. Hi, thanks for taking my questions. Just following on the DRIP questions and comments. I think toward the end of last year, we were thinking more about deleveraging versus maybe, historically, you've been spending more on M&A. If you can maybe reiterate, if deleveraging is still top of mind at this point, and if you have set deleveraging targets, obviously, depending on your decision on the DRIP. And then, second question, if you can maybe provide a bit more color on long-term fiber potential and copper decommissioning. We've had global players talking about longer-term fiber capex intensity in the 10% range. Is that something you are also seeing in the longer term? Yeah. No, if you want those, just jump in now, fire away.

We're very focused on development of our industry, leading mental health products and services.

And we have.

The opportunity to intelligently and on an anonymised basis.

Monetize vast amounts of data so we'll be looking at what we can do in that regard and provide additional value through analytics and insights.

In terms of the Lifeworks integration as Darren mentioned, we're about $233 million in synergies on our plan of $427 million and so 2024 is a lot about.

Continuing to drive those synergies continue to drive.

EBITDA margin expansion.

<unk>.

As we.

Continue to scale this asset.

Doug: On your first question, we will continue to de-lever in 2024, but it will be a little slower than we expect subsequent to 2024 with having to make the two spectrum auction payments in 2024, our estimate. And so I would say yes, we're still on a positive trajectory based on the strength of our free cash flow. But it'll be a bit slower in 2024 and accelerate a bit more into 2025 and beyond.

There is a significant.

A significant opportunity for us to show.

The significant value of this business adds and how it contributes to tell us this asset mix and positively.

Differentiates in terms of the valuation it contributes to tell us so in terms of specific goals, where we're definitely looking for double digit.

EBITDA contribution and significant.

<unk>.

Expansion on our cash contribution from this business.

<unk>.

Well that sounds really exciting Levine.

Sure liked your trajectory on 11% EBITDA growth in Q2, 20% EBITDA growth in Q3, 24% EBITDA growth in Q4, so sure would be disappointing not to hit circa 20% in 2024, given your leadership the cross selling opportunities the cost synergy opportunities and the team.

Doug: On M&A, we'll continue with strategic M&A. And I would say at this moment, we don't anticipate an impact on leverage at all. And we do have a certain amount built into our plan and are so far tracking to that. Great. And Tony, why don't you talk about copper decommissioning? Sure. Hi Jerome.

Hi support Robert Let's go to the next question. Thanks, Mark Thank you Bob.

Next question please.

Yes of course, just before we go to the next question I would like to remind everyone to queue up for a question. Please press zero one now.

Tony: As you will have seen, pure fiber and 5G deployments now cover over 3.2 million premises and 86% of the Canadian population, respectively. We have exceeded 1.6 million pure fiber customers across BC, Alberta, and Quebec, which reflects a global leading penetration of the built footprint, a built penetration measure that we think sets the bar for what good looks like. So with that impressive fiber investment, we're seeing great strategy returns. Our churn performance on a pure fiber base is less than 1% and has been so for 15 of the last 16 quarters.

And the next question comes from Jeremy <unk> from <unk>. Please go ahead.

Hi, Thanks for taking my questions just following on with your questions and comments.

I think towards the end of last year, you were thinking more about deleveraging versus maybe.

Historically, you've been spending more on M&A, if we can maybe reiterate.

If deleveraging is still top of mind at this point and if you have set deleveraging targets, obviously, depending on your decision on the drip and then the second question.

You can maybe provide a bit more color on long term fiber potential in copper decommissioning, we've had global players talking about longer term fiber capex intensity in the 10% range is that something you are also seeing longer term. Thank you.

Tony: It presents a great product intensity opportunity for homes and businesses that far surpasses other networks, be they corporate or co-op. Combined with 5G, we get an impressive broadband network resiliency for homes and businesses, and we support higher value loading, for which we saw in Q4 a 12% year-over-year increase in the base penetration of our 1G plus plan. And of course, the fiber is really accentuating the future-proofing as internet bandwidth demands continue to increase. Our pure fiber can easily accommodate higher speeds with minimal incremental investment per subscriber.

Yes, sorry.

If you want does.

Fire away.

Yeah.

On your first question, we will continue to Delever in 2024.

We'll be a little slower than we expect subsequent to 'twenty four with having to do the <unk> spectrum auction payments in 2024 is our estimate.

So I would say, yes, we're going to still on a positive trajectory based on the strength of our free cash flow.

It'll be a bit slower in 'twenty, four and accelerate a bit more into 'twenty five and beyond.

Tony: A very different picture from those networks on legacy copper or coax, which have a much more costly journey of investment and upgrade required. Talking about the exciting copper retirement opportunity this represents, we decommissioned in 2023 14 central offices and the copper serving areas they serviced, and that presents a unique and differentiated real estate development opportunity for our business. So let's talk about urban mining, as we like to call it. We've provided and proved the capability in multiple geographies in Victoria, Edmonton, and the Lower Mainland. We've determined that we can create a profitable transformation of this retired copper asset, and this paves the way for unlocking real estate opportunities and, importantly, supporting critical social needs through the delivery of affordable housing in the hearts of the communities we serve.

On M&A, we will continue with strategic M&A.

And I would say.

At this moment, we don't anticipated impact on leverage at all and we do have a amount built into our plan and so far tracking to that.

Great and Tony why don't you talked about copper decommissioning sure Hi, Jerome.

As you will have same tier fibers on slide <unk> deployments now cover over $3 3 million premises in <unk>. The Canadian population, respectively. We suppose actively $1 6 million to apply the customers across BC, Alberta, and Quebec, which reflects a global leading penetration of bill.

Print build penetration measure that we think sets the bar for what good looks like so with that.

Impressive fiber investment we're seeing great.

Our strategy returns.

Our churn performance on the pure private places less than 1% and has been for 15 of the last 16 quarters. It presents great product intensity opportunity behind them businesses that far surpasses other networks with a cultural covenants.

With <unk>, we got an impressive broadband network resiliency for homes and businesses.

We support higher value loading.

Which we saw in Q4 of 12% year over year increase in the base penetration about one gig plus plants.

Tony: In 2024, we aim to retire a further 25 Central Office and Associated Service areas for copper retirement and open up the opportunity of urban mining, building on the 14, as I mentioned, we achieved in 2023. So I think it represents an exciting path for us. And then we're exploring some innovative ideas around how we can continue to build out in those markets not yet deployed with pure fiber. And we'll have more to say on that subject at a later date, but there are some exciting partnerships that we're developing which I think will help us to continue to capitalise on the extreme benefits fiber represents. And, of course, the recycling of copper provides significant positive opportunities on the environmental front as well. Okay, Robert.

And of course, the fiber's really.

Accentuating the future proofing as Internet bandwidth demands continue to increase after you apply that can easily accommodate higher speeds with minimal incremental investment per subscriber a very different picture from those networks on legacy copper coax.

Which has a much more costly journey of investment and upgrades required.

Talking about the exciting corporate retirement opportunity this represents.

We decommissioned in 2023, 14 central offices and the Copa serving areas.

This.

That presents a unique and differentiated real estate development opportunity for our business. So lets talk about urban mining as we like to call. It.

We've provided improved the capability in multiple geographies and Victoria Edmondson in the lower mainland and we determined that we can create a profitable transformation of this slide copper asset.

And this paves the way for ONEOK and real estate opportunities and importantly, supporting critical social needs through the delivery of affordable housing in the hearts of the communities we serve and.

Robert Mitchell: Thanks, Jerome. Any other questions? Thanks. Yes, of course. The next question comes from Stephanie Price from CIBC World Markets. Please go ahead.

In 2024, we aim to reach our 25 Central office and associated service centers, the corporate retirement and opening up the opportunity of urban mining building on the <unk> as I mentioned, we achieved in 2023. So I think it represents an exciting path for us.

Stephanie Price: Thank you. I was hoping that just given the increasing spend with TI and going over to TI as CFO, maybe you could talk a little bit about how you see that relationship with TI evolving over time. And then for my second question, I hope you can touch on the additional restructuring costs of roughly $300 million in 2024. In a tougher economic environment, do we assume more of an annual cadence for restructuring as you look to optimize the business?

And then we're exploring some innovative ideas around how we can.

Continue to build out in those markets not yet deployed with pure fiber.

We'll have more to say on that subject at a later date.

Exciting.

The partnerships that we're developing which I think will help us to continue to capitalize on the midstream benefits fiber represents.

And of course, the real quickly another copper provides significant positive opportunities on the environmental front as well.

Stephanie Price: And related, Doug, I think you mentioned that you expect growth to build over the year. And I assume that might be restructuring related as well. Thank you. Sano, given the criticality of the relationship between our consumer business and TI, why don't you speak to that? And Jeff, you're on the call. If you've got a few things that you want to add to post-Sano's answer, I think that would be great. And Doug, you and I can handle the restructuring. Jano.

Hey, Robert.

Thanks, Jerome and inspection business.

Yes of course and the next question comes from Stephanie price from <unk>.

CIBC World markets. Please go ahead.

Thank you.

I was hoping that just given the increase in spend.

Hi, <unk>.

Over to <unk> CFO, if you can talk a little bit about how you see that evolving over time.

And then for my second question, hoping you could touch on the additional restructuring costs of roughly $300 million in 2024, and a tougher economic environment do we assume more of an annual cadence to restructuring as you're to optimize the business and related Doug I think you mentioned that you expect EBITDA growth to build over the year and exit them they'd be restructuring related as well. Thank you.

Zainal: Thank you. Thanks, Stephanie. Great question.

Zainal: I think you'll definitely see us, as I mentioned around the public review as well, continuing to synergize and leverage TI effectively across our business. And you can see that there are ample opportunities from an end-to-end perspective. Customers are wanting more digital solutions, and what we're doing with TI is also ensuring that we build exciting new product roadmap capabilities that we can own ourselves, we can license from an end-to-end perspective to other peers in the industry globally, and that reduce our costs and create an opportunity for us to really own our destiny in terms of our product roadmaps. So you'll see more of that in the future.

Given.

The criticality of the relationship between our consumer business.

Why don't you speak to that and Jeff you are on the call. If you've got a few things that you want to top up on post sandals answer I think that would be great.

And Doug you and I can handle restructuring.

Okay. Thank you thanks, Stephanie great Great question.

Thank you will definitely see us as I mentioned around the public review as well that we're going to continue to synergize and leverage ti effectively across our business and.

You can see that there are ample opportunities from an end to end perspective customers are wanting more digitized solutions.

Zainal: And it accelerates our opportunity to drive those gains because we're not dependent on a third party. We have a synergistic relationship with TI throughout development. And then on the overall cost per customer perspective, leveraging TI enables us to support the demands of our customers in a product-intensive environment. We're serving our customers across numerous products, and we're able to leverage TI to scale those capabilities and provide quality and excellence in our customer service profile. And so while we're going to continue to digitize our customer support and ensure that we build more streamlined customer journeys, as we've done with Public Mobile, we're also able to lean on our relationship with TI and the depth of experience at TI in terms of supporting our business for years and over the transitions we've made from things like copper to fiber and from new products that we've offered in the market. So I think you' Maybe, Jeff, you wanted to top it up.

And what we're doing with Ti is also ensuring that we build exciting new product roadmap capabilities.

We can own ourselves we can license from an end to end perspective to other peers in the industry globally and that reduce our costs and create an opportunity for us to really own our destiny in terms of our product roadmaps. So youll see more of that to come in.

It accelerates our opportunity.

To drive those gains because we're not dependent on a third party, we have a synergistic relationship with Ti across development and then on the on the overall cost per customer perspective, leveraging ti enables us to support the demands of our customers and our product intensity <unk>.

Ironman, we're serving our customers across numerous products and we're able to leverage ti to scale those capabilities and provide quality and excellence and our customer service profile.

So while we're going to continue to digitize, our customer support and and ensure that we build a more streamline customer journeys as we've done with public mobile.

We're also able to lean on our relationship with Ti and the depth of experience in Ti in terms of supporting our business over years and over the transitions, we've made from things like copper to fiber.

Jeff: Sure. Thanks, Dano. Hey Stephanie.

Jeff: Nice to hear your voice again. A few things I would add, and Kim Biotic. Telus and TI is by no means new. That has been in place as part of our originating thesis at first instance, Telus International enabling Telus in its digital transformation and delighting customers through the combination of talent and technology. But at the same time, Telus International then, pays for creating that, learning from serving other customers, bringing those back to Telus. And then what we do within Telus enables us to go and take that show on the road, so to speak, and serve other customers, certainly principally in the telecom and media segment, but by no means exclusively, given the obvious similar dynamics in the buying behaviors, challenges that customers in the BFSI, healthcare, and other segments I think that is consistent with that symbiotic dynamic.

And from new products that we've offered in the market. So I think youll continue to see that synergistic relationship off mall and Youll see it.

Bi directional with respect to supporting us on our growth in ampoule objectives and are supporting Ti in terms of leveraging those solutions more globally, maybe Jeff you wanted to top up.

Sure thing.

Stephanie Thank you hear your voice again.

A few things I would add.

The symbiotic relationship between Telus and Ti is by no means new that has been in place as part of our originating thesis first instance, Telus international enabling tell us.

Digital transformation and delighting customers through the combination of talent and technology, but at the same time Telus International then.

Repatriating that.

Learnings from serving other customers, bringing those back to tell US and then what we do within four Telus enables us to go and take that show on the road so to speak and serve other customers certainly principally in the telecom and media segment, but by no means exclusively given the obvious similar dynamics in the buying behaviors and chat.

<unk> customers in the BSI health care and other segments are challenged with as well I think consistent with that symbiotic dynamic whilst we're certainly.

Jeff: Whilst we're certainly gladdened to see Vanessa leave, bringing GOPI on board is a part of the robust, coordinated, and Session Planning, again an opportunity for both TI and Telus to benefit from one another's access to global talent, and Gopi, having proven herself as a trusted leader, advisor, and advocate within the Telus organization for the past 14 years, brings to TI an opportunity to further strengthen the connection between the two And as Daniel just pointed out, the opportunities prospectively to continue to enable one another, and similarly Naveen's comments earlier on the healthcare front, I think the environment just becomes that much more target-rich directly. Doug, do you want to comment on the restructuring? Yeah, on the restructuring side, we still have an elevated amount of restructuring within the real estate portfolio.

To see Vanessa leave bringing <unk> on board as part of the robust coordinated succession planning again, an opportunity for both Ti and Telus to benefit from one and others.

As to a global talent pool.

<unk> proven herself as a trusted leader in adviser and advocate within the Telus organization for the past 14 years brings to <unk> an opportunity to further strengthen the connection between the two organizations and as Dan just pointed out.

Opportunities prospectively to continue to enable one another and similarly intervenes comments earlier on the healthcare front.

I think the.

The environment, just becomes that much more target rich bi directionally.

Doug I want to comment on restructuring on the restructuring side.

Still have an elevated amount of restructuring within the real estate portfolio. So as Tony highlighted we have a significant opportunity on the rationalization of real estate not just in coordination with the copper decommissioning, but even within our own office footprint.

Jeff: So, as Tony highlighted, we have a significant opportunity for the rationalization of real estate, not just in coordination with the copper decommissioning, but even within our own office footprint and aligning the way we do business and the way our team members work today versus the old historical footprint that we have. So I'd say a little more than a third of it is going to be the elevated real estate which we'd have in a year again.

Aligning the way, we do business and the way our team members work today versus.

That the old historical footprint that we have so I'd say, a little more than a third of it is going to be the elevated real estate, which will have an year again, there is a portion of it for M&A and integration and some of the items that we would normally see as well and then the remaining is the ongoing efficiency and effectiveness program and if you.

Doug: There's a portion of it for M&A and integration and some of the items that we would normally see as well. And then the remaining amount is for the ongoing efficiency and effectiveness program. And if you remember, our ongoing run rate is generally $150 to $200 million. So we are elevated by maybe $100 million next year. But it's a combination of all those things and trying to leverage all the assets that we have in front of us. Great, thank you very much.

Remember our ongoing run rate is generally $150 million to $200 million. So we are elevated maybe $100 million next year, but it's a combination of all those items.

And trying to leverage.

All the assets that we have in front of us.

Great. Thank you very much.

Stephanie Price: Thanks, Stephanie. Miha, we have time for one more question, please. Yes, of course. The next question comes from Simon Flannery. Please go ahead.

Thanks, Stephanie.

We have time for one more question. Please.

Yes of course next question comes from Simon Flannery. Please.

Please go ahead.

Simon Flannery: Great. Thank you very much. Good afternoon.

Great. Thank you very much good afternoon, I wanted to just come to the 24 outlook, particularly around the wireless industry. Maybe you could just talk about the sustainability, we've seen across the whole industry. This quarter. This year really strong loading I know the government is looking at a foreign student fees. So permits how do you think about the sustained.

Simon Flannery: I wanted to just come to the 24 Outlook and particularly the wireless industry. Maybe you could just talk about the sustainability we've seen across the whole industry this quarter, this year, really strong load. I know the government's looking at foreign student visas or permits.

Darren: How do you think about the sustainability of the current growth rates for the industry? And then you specifically called out the churn as being better than peers, but still not where you want it to be. So perhaps just unpack how you think you can bring that down.

Ability of the current growth rates for the industry and then you specifically called out the churn has been better than peers, but still not where you want it to be so perhaps just unpack. How you think you can bring that down or are you already seeing some normalization in Q1. Thank you.

Zainal: Are you already seeing some normalization in Q1? Thank you. Okay, Zainal and Naveen, I'll hand that over to you to comment on, so we cover up both the consumer side and also the B2B side, particularly in respect of IoT as well. Zainal, why don't you go first, and Naveen, you can compliment.

Okay, Zeno and Devine.

And over to you to combat Don So we cover our both the consumer side, but also the.

<unk> side, particularly in respect.

Specter of Iot as well.

Why don't you go first and then you can complement.

Yeah, that's great. Thank you so much for the question.

Zainal: Yeah, great. Thank you so much for the question. So I think we are focused on continued premium and high quality product intensity loading. And we're also focused, as I mentioned, on some of the public discussions on penetrating areas that we have been under penetrated in the past. And I think that there is tremendous growth opportunity for us and our organization in that regard. We will obviously be impacted by the macroeconomic environment, but I think that there are growth prospects for us, as we have been under penetrated in some of those segments. And we've been under penetrated from a product intensity perspective in some regions of Canada, which I think we can continue to pursue. So, you know, when it comes to churn, as Darren highlighted, we have been, of course, ahead of the industry and ahead of our peers, but we're not satisfied.

So I think we are focused on continued premium and high quality product intensity loading.

And we're also focused as I mentioned.

Some of the discussion on public on penetrating areas that where we have been underpenetrated in the past and I think that there is tremendous growth opportunity for us in our organization in that regard that Ken.

We will obviously be impacted by the macro economic environment, but I think that there are growth prospects for us as we have been underpenetrated in some of those segments.

And we've been Underpenetrated from a product intensity perspective in some regions of Canada, which I think we can continue to pursue so when it comes to churn as Darren highlighted we have been of course ahead of the industry and ahead of our peers, but we're not satisfied and what it taught us.

Zainal: And what it's taught us from a performance perspective is that we're going to have to continue to advance our product intensity and bundling place for all segments of the market and have more attractive bundles for all segments of the market. And, you know, when you look at the assets that we have and our ability to accelerate the go-to-market of those assets, as we discussed with TI. We have tremendous upside opportunities. Clients are responding to our desire to see, you know, greater product intensity and create greater value from them. And I think you can see that in areas like security and smart home automation, which we will continue to evolve.

From a performance perspective is that we're going to have to continue to advance our product intensity intensity and bundling place for all segments of the market and have more attractive bundles for all segments of the market and when you look at the assets that we had and our ability to accelerate the go to <unk>.

Our kit at those assets as we discussed with Ti.

We have tremendous upside opportunity clients are responding to our desire to see greater product intensity and create greater value from them and I think you can see that in areas like security and smart home automation, which we will continue to evolve you can see that in areas like health and other areas.

Zainal: You can see that in areas like health and other areas that we're continuing to bundle. And you can see it in our very unique and differentiated content strategies. And as an example, we were the first in the world to launch the new version of Stream Plus 2.0, which bundles Netflix, Disney Plus, and Amazon Prime for the first time ever.

We're continuing to bundle and you can see it in our very unique and differentiated content strategy. As an example, we were the first in the world to launch the new version of stream, plus two to Idaho, which bundles, Netflix Disney plus and Amazon Prime for the first time ever and so these types of offers are going to.

Zainal: And so these types of offers are gonna continue to resonate with our base and continue to drive product intensity and continue to differentiate us relative to our peers. And I think that, you know, those are the kinds of areas that we'll continue to lean into to improve our churn results. Thanks, Dan. I appreciate the commentary on judicious loading in respect of quality and potency on our retention front, the continued focus on efficiency through to the AMPU level, and how we win in the marketplace as it relates to bundling. Naveen, do you want to comment?

<unk> to resonate with our beef and continue to drive product intensity and continue to differentiate us relative to our peers.

Think that those are the kinds of areas that we'll continue to lean in queue to improve our churn results.

Thanks, Dan I appreciate the commentary on judicious loading in respect of quality and the potency on our retention front. The continued focus on efficiencies through to the <unk> level and how we win on the marketplace as it relates to bundling the vein do you want to comment.

Naveen: Yeah, thanks, Darren. Just building on Zainal's comments, you know, a similar thought process on the B2B side. So, first and foremost, you know, we are very focused on high quality, Good Margin Loading. We're not going to chase non-profitable or low-profitable loading.

Yes, thanks Darren.

Just building on <unk> comments, similar thought process on the <unk> side, So first and foremost.

We are very focused on high quality.

Good margin loading we're not going to.

Chase non profitable or low profitable loading.

Naveen: I think there's a significant market growth opportunity that we still have in the B2B space. There are natural geographies where we have a lot more addressable market to go after, and that's what we're focused on. I think on the bundling point, again, as I mentioned in my response to health, what a great differentiator for our B2B organizations. We can leverage that in terms of cross-sell and strategic value or solution value. We can provide customers with a combination of telecommunications and health capabilities. So there is lots we can do there and lots of opportunity for growth and intensity.

I think theres a significant.

Market growth opportunity that we still have on the BBB space there are.

Natural geographies, where we have a lot more.

Dressel market to go after and that's what we're focused on.

On the bundling point.

Again as I mentioned on my response and health, what a great differentiator.

For our BTB organizations, and we can leverage that in terms of.

The cross sell and strategic value or solution value, we can provide customers with a combination of <unk>.

Telecommunications and health capabilities.

So lots we can do there.

And lots of opportunity for growth in intensity and then on the <unk> or monetizing <unk> side, we continue to remain very bullish in terms of our ability to monetize <unk>.

Naveen: And then on the 5G or monetizing 5G side, we continue to remain very bullish in terms of our ability to monetize 5G. We have, you know, as you heard and saw in our results, really strong momentum with IoT and connected device growth. You know, we have a natural differentiator there with Canada's only dedicated IoT core network.

As you heard and saw in our results really strong momentum with Iot and connected device growth.

We have a natural differentiator there with Canada's only dedicated Iot core network.

Naveen: You know, data monetization, it's a bit of a marathon, not a sprint, but it is becoming more and more of a growth story across both our vertical and horizontal services and applications. You know, on the private wireless network, we had very, very strong momentum in 2023 and an even stronger funnel in 2024. And so we'll continue to look at intelligent ways to monetize 5G; we will look at smart, Tuck-in Acquisitions where it makes sense. We recently bought Badal, which is really a leader in supporting data migration to the cloud, data management excellence, and data analytics, and a great opportunity for us to bring that capability across health, across Telus Agriculture, consumer goods, and then our core B2B capabilities, along with our vertical and horizontal So lots of opportunities for us to differentiate, drive product intensity, and drive significant revenue growth, all underpinned by our focus on cost and leveraging our partners in CI to help drive that really strong digital generative AI and automation and self-serve capabilities. Back to you, Darren. Thanks a lot.

Data monetization.

It's a bit of a marathon not a sprint, but it is becoming more and more of a growth story across both our vertical and horizontal services and applications.

Private wireless network, we had very very strong momentum in 2023, and an even stronger funnel in 2024.

And so we'll continue to look at.

Intelligent ways to monetize.

Five G E.

We will look at smart.

Tuck in acquisitions, where it makes sense we recently.

But al which really is a leader in supporting data migration to the cloud data management excellence and data analytics and a great opportunity for us to bring that capability across.

Health across Telesat, agriculture, consumer goods, and then our core <unk>.

<unk> capabilities, along with our vertical and horizontal.

Industry solutions capabilities on the Iot side.

So lots and lots of opportunities for us to differentiate dry product intensity and drive significant.

Revenue growth all underpinned by our focus on cost and leveraging our partners and Ti to help drive that.

Really strong digital generative AI and automation and self serve capabilities back either.

Darren: Simon, one thing that's exceedingly clear in terms of a differentiated Telus story on a global basis is that our growth is phenomenally well underpinned across both business and consumer because of our customer service excellence and what it delivers in terms of client loyalty and retention. And that's true whether it's digital, whether it's our great people in our culture, or whether it's TI supporting those service excellence outcomes. And for us, that's just good business in supporting growth. And at the end of the day, keeping the customers that we have sets up the right platform, but it also gives us the right upselling opportunity as we drive product penetration with our bundling strategies. So that's the ecosystem and our philosophy, and you can expect more of the same in 2024.

Thanks, a lot Simon and one thing that's extremely clear in terms of a differentiated tell a story on a global basis is that our growth is phenomenally well underpinned across both business and consumer because of our customer service excellence.

And what it delivers on our client loyalty and retention basis.

That's true whether it's digital whether it's our great people and our culture.

It's Ti supporting those service excellence outcomes and for US that's just good business.

And supporting the growth and at the end of the day, keeping the customers that we have set up the right platform, but it also gives us the right upselling opportunity as we drive product penetration with our bundling strategy. So.

That's the ecosystem.

Our philosophy and you can expect more of the same in 2024. Thanks for the excellent question.

Darren: Thanks for the excellent question. Thank you. Thank you, Simon, and thank you, everyone, for joining us today. Please feel free to reach out to the IR team with any follow-ups you may have. This concludes the Telus 23Q4 earnings conference call. Thank you for your participation, and have a nice day.

Thank you.

You Simon and thank you everyone for joining US today, please feel free to reach out to the IR team with any follow ups you may have.

This concludes the totals 23 Q4 earnings conference call. Thank you for your participation and have a nice day.